Cogencis (11/05/2020) - NEW DELHI – Futures contracts of all components of edible oil basket rose on domestic exchanges today.
Extending gains from previous four sessions, the May contract of soybean settled a tad higher on the National Commodity and Derivatives Exchange due to shrinking supply in domestic markets, the analysts said.
Any sharp gain was limited due to weakness in key contracts on the Chicago bourse, a Mumbai-based analyst said.
Soybean on the CBOT fell today due to bargain buying after the futures hit a one-month high in the previous session. The oilseed rose earlier due to hopes of rising demand for US soybean from China. The US is the largest producer of soybean and China is the largest importer of the oilseed.
The May contract of refined soyoil on the NCDEX rose 1%, and the same-month crude palm oil futures on the Multi Commodity Exchange of India rose over 2% higher due to improved buying at lower price level during the ongoing lockdown, dealers said.
Fresh cues were not available from Bursa Malaysia Derivatives as the bourse was shut today on account of a public holiday for Nuzul Al-Quran. The bourse will resume trade on Tuesday.
On Friday, the most active July delivery contract of crude palm oil on the BMD closed 3.8% higher at 2,019 ringgits (around 35,211 rupees) a tn.
Mustard futures on the NCDEX ended higher due to increased procurement pace by the government in spot markets, analysts said.
The National Agricultural Cooperative Marketing Federation of India, a central nodal agency which usually procures oilseeds, has purchased 340,000 tn mustard from states so far during the lockdown period, the release said on Sunday.
Mustard has been procured from Rajasthan, Madhya Pradesh, Uttar Pradesh, Gujarat, and Harayana, while chana, in addition to the above states, has also been procured from Telangana, Andhra Pradesh, Karnataka, and Maharashtra, it said.
The following table details prices of edible oils and oilseeds at 1710 IST, in rupees, and the difference compared with the previous session:
Refined soyoil May
Crude palm oil May
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
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