14.08.2019 (Cogencis) - MUMBAI – All futures contracts in the edible oil complex rose today on the back of a host of factors such as low stock, hike in base import tariffs, and firm cues from global markets.

Soybean futures on National Commodity and Derivatives Exchange rose as stock of the current crop has fallen below 2,000 tn after the exchange marked over 520 tn for staggered delivery in the August contract. A month ago, the stock stood at over 22,000 tn. Lower stock encourages bulls as lack of delivery spurs speculative interest in the commodity.

Severe floods have devastated the early-sown crop in and around Sangli district in Maharashtra, said Suresh Mantri of Intellitrade, which is seen delaying the arrivals of the new crop, which too supported the prices of soybean. At Indore, soybean traded at 3,750-3,775 rupees per 100 kg, up 30-40 rupees from the previous session.

Soyoil futures were also up tracking firmness in the raw material. India's soyoil imports in July falling 9.3% to 319,606 tn in July, according to Solvent Extractors' Association of India data, also supported its prices. Among other factors, hiking the base import tariff on soyoil to $737 a tn from $705 a fortnight ago, which will increase the absolute value of import duty, also supported prices.

However, a 44-47% rise in imports of competing edible oils, such as palm and sunflower oil in July, limited the upside in soyoil prices. At Indore, prices of soyoil rose 2 rupees to 703-798 rupees per 10 kg, Cogencis-polled data showed.

Crude palm oil futures were also up on an over 1-rupee decline in the Indian unit against the dollar earlier this week and higher import tariff. The base import tariff on crude palm oil was raised to $527 per tn from $502, on refined palmolein to $570 per tn from $540, which would raise the absolute value of import duty on palm oils. 

Among global cues, fall in palm oil stock in Malaysia for the fifth straight month in July also supported prices on Bursa Malaysia Derivatives, and this was reflected in the prices on MCX, said an analyst with Angel Broking. 

Mustard futures also rose tracking prices of soybean, and due to good demand for mustard meal, said an analyst with Angel Broking. The SEA data showed mustard meal exports were 19% higher on year at 93,837 tn in July, mainly due to firm demand from South Korea.

Good seasonal demand for mustard oil in the domestic market also pushed up the prices of the oilseed, said an oilseed dealer based in Jaipur. In Jaipur, mustard was sold at 4,125-4,150 rupees per 100 kg today, slightly higher from the previous day, the dealer said. 

Indian spot and futures markets will remain shut on Thursday on account of Independence Day. 

The following table details prices of edible oils and oilseeds at 1900 IST, in rupees, and the difference compared with the previous session:

** Trade in soyoil and crude palm oil futures will end at 2100 IST

End

US$1 = 71.27 rupees

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT