Cogencis (01/10/2019) - NEW DELHI – Futures contracts of all components of the edible oil basket extended losses on domestic exchanges today.

The October soybean contract settled 0.4% lower on the National Commodity and Derivatives Exchange as supply of the fresh crop in spot markets started picking up pace, analysts said.

In Indore, the key market, arrivals of soybean were pegged around 1,000 bags (1 bag = 100 kg). Supply is expected to pick up pace as the harvest period is setting in, traders said. However, supply is seen lower on year as floods and heavy rains have delayed harvests.

However, a significant decline in soybean prices on NCDEX was cushioned by strength in key contracts on the Chicago Board of Trade, a Mumbai-based analyst said.

Soybean prices on the American bourse rose after the US Department of Agriculture has lowered estimates for supply in the US. The US agency estimated soybean supplies at 913 mln bushels (1 bushel = 27.2 kg) so far in the US, the top producer, below the average estimate for 982 mln bushels.

Refined soyoil on NCDEX and crude palm oil contract on the Multi Commodity Exchange of India ticked lower due to tepid buying in wholesale markets, analysts said. Most of the demand for the ongoing Navratri festival has already been met.

Any sharp fall on MCX was limited due to firmness in bellwether contracts on the Bursa Malaysia Derivatives, analysts said. 

The December crude palm oil closed 1% higher on BMD today due to a weak ringgit against the dollar, analysts said. Weakness in the Malaysian currency makes the commodity cheaper for buyers holding other currencies.

Gains in key soyoil contracts on CBOT also supported the prices on BMD, the analysts said. Crude palm oil and soyoil prices largely move in tandem as they are used as substitutes of each other.

The October mustard contract also closed lower on NCDEX due to rise in sowing in some parts of Rajasthan, the top grower, analysts said.

Expectation of higher mustard crop acreage weighed on sentiment, traders said.

The following table details prices of edible oils and oilseeds at 1733 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 = 71.08 rupees

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