Cogencis (12/05/2020) - NEW DELHI – Futures contracts of soybean and crude palm oil fell, while those of refined soyoil and mustard rose on domestic exchanges today.
Snapping gains from the previous session, the May contract of soybean on the National Commodity and Derivatives Exchange was down due to weak demand for soymeal from exporters, analysts said. The fall in prices was, however, limited due to gains in key contracts on Chicago Board of Trade, a Mumbai-based analyst said.
On the Chicago bourse, soybean rebounded today following fresh export sales to China, and fears of possible crop damage as a frosty weekend in the US is expected. While the US is the largest producer of soybean, China the biggest importer.
The May crude palm oil contract on the Multi Commodity Exchange of India fell nearly 1% due to weak bulk demand in spot markets, dealers said. Due to erosion of demand at domestic markets because of suspension of food segment services during the lockdown, palm oil prices have fallen about 20% in the last month, dealers said.
Weakness in key contracts of crude palm oil on Bursa Malaysia Derivatives also exerted pressure on the MCX. Crude palm oil contracts on BMD ended lower today due to weak overseas demand amid the COVID-19 pandemic, and also because of higher output in the country, analysts said.
Malaysia's crude palm oil output rose 18.3% on month in April to 1.7 mln tn, data from the Malaysian Palm Oil Board showed.
Weak demand from domestic biofuel manufacturers also dampened demand for the commodity. Crude palm oil is used to make biofuel.
Refined soyoil on the NCDEX rose due to a pickup in demand at lower prices, mainly for home consumption, traders said.
Mustard futures on the NCDEX were up due to higher demand from oil millers and rising pace of procurement by government agencies, analysts said.
The following table details prices of edible oils and oilseeds at 1640 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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