Cogencis (24/06/2019) - NEW DELHI – Futures contracts of all components of the edible oil basket edged lower on domestic exchanges today as monsoon current moved into key soybean, the crucial kharif oilseed, growing states, analysts said.
According to the India Meteorological Department, southwest monsoon current today reached Madhya Pradesh, the top grower of soybean, and Uttarkhand, and covered more parts of Maharashtra, the second largest grower of soybean, Chhattisgarh, and Uttar Pradesh.
Monsoon rains would ramp up sowing of the kharif crops, including oilseeds, in the country.
The July soybean contract on the National Commodity & Derivatives Exchange has hit seven-week low of 3,587 rupees per 100 kg during the day as sowing catches pace in the country, analysts said.
Farmers in the country have sown soybean across 53,400 ha as of Thursday, up from 37,000 a week ago, according to farm ministry data.
Weak soymeal exports also weighed on the prices, traders said.
However, gains in key soybean contracts on Chicago Board of Trade restricted the fall on the NCDEX, analysts said.
Prices rose on the Chicago bourse because of a lag in sowing due to adverse weather conditions in the US, world's largest producer of soybean, they said.
Refined soyoil futures on the NCDEX and crude palm oil on the MCX fell due to adequate stocks in wholesale markets and tailing weakness in the world markets, analysts said.
Crude palm oil prices on the Malaysian bourse settled lower due to concerns over production in Malaysia, the world's second largest producer, analysts said.
Weakness in soyoil on the CBOT also weighed on the tropical oil's prices as they are used as substitutes of each other.
Mustard futures on the NCDEX closed lower due to higher arrivals in the spot markets, traders said.
In Jaipur, the oilseed was sold at 4,070-4,075 rupees per 100 kg, 30-35 rupees down from Thursday. Arrivals across India were pegged at 180,000 bags (1 bag = 85 kg) compared with 175,000 bags, traders said.
The following table details prices of edible oils and oilseeds at 1715 IST, in rupees, and the difference compared with the previous session:
Refined soyoil Jul
Crude palm oil Jul
US$1 = 69.37 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
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