Cogencis (03/03/2020) - NEW DELHI – Futures contracts of all components of the edible oil basket rebounded on the domestic exchanges today, tracking gains in global markets.

The most-active March contract of soybean rose 2% on the National Commodity and Derivatives Exchange due to improved demand at a lower price level, analysts said. The contract had hit a seven-month low on NCDEX due to confirmed case of noble coronavirus in India.  

In Indore, a key market, soybean was sold at 3,750 rupees per 100 kg, 50-70 rupees higher from Monday, traders said.

Strength in key contracts on the Chicago Board of Trade also lifted sentiment on NCDEX, a Mumbai-based analyst said.

Soybean prices rose on the American bourse due to bargain buying after they fell sharply last week following concern over the fast-spreading coronavirus, dealers said.

Futures contracts of refined soyoil also rose on NCDEX on cues from soybean from the domestic and global bourses.

Crude palm oil on the Multi Commodity Exchange of India rose following India's move to not extend safeguard duty on refined palm oil from Malaysia, analysts said.

The Directorate General of Trade Remedies did not recommend a further extension of bilateral safeguard duty on imports of refined bleached deodorised palm oil and refined bleached deodorised palmolein from Malaysia under the India-Malaysia Comprehensive Economic Cooperation Agreement, according to a notification from the trade agency on Monday.

The move came after the government body found in a probe launched in August that the huge imports of refined of palm oil from Malaysia were hurting the domestic refining industry. This will restrict refined palm oil imports from the southeast Asian country. 

Gains in key crude palm oil contracts on Bursa Malaysia Derivatives also buoyed prices on the MCX.

Futures contracts of crude palm oil on BMD settled higher, tracking benchmark soyoil contratcs on CBOT and buying at lower prices, said analysts.

Over the past two months, crude palm oil prices on the BMD have fallen around 750 ringgits (approximately 13,040 rupees) a tn due to dismal overseas demand primarily from India and China.

Weak demand from the two major buyers is likely to keep crude palm oil prices under check in the coming sessions, said Kotak Securities.

Mustard futures on NCDEX rose due to reports of crop damage in key producing areas of Rajasthan, the top grower, due to recent rainfall, traders said. 

The following table details prices of edible oils and oilseeds at 1606 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 = 73.09 rupees

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