20.04.2020 (Cogencis) - NEW DELHI – Futures contracts of all components of the edible oil basket declined on domestic exchanges today.

Extending losses from the past four sessions, the May soybean contract on the National Commodity and Derivatives Exchange settled around 2% lower, in line with the weakness in key contracts on the Chicago Board of Trade, analysts said. 

Soybean futures on the Chicago exchange fell due to dampening demand from major buyers in wake of the COVID-19 pandemic, traders said.

Back home, weak demand for soybean from the soymeal sector due to sluggish export demand for the latter also weighed on sentiment, dealers said.

Refined soyoil and crude palm oil on the Multi Commodity Exchange of India both declined due to diminishing bulk demand amid the nationwide lockdown, analysts said.

Losses in key contracts on the Bursa Malaysia Derivatives also drifted weighed on crude palm oil contracts on MCX.

Futures contracts of crude palm oil on BMD settled lower today as investors booked profits after the recent rise in prices, said Ajay Kedia, head of Kedia Commodities.

The most-active July delivery contract on BMD closed 0.2% lower at 2,230 ringgits (around 39,091 rupees) a tn.

For the rest of the week, the July contract is seen trading at 2,145-2,380 ringgits a tn, said Kedia.

Some buying at a lower level is likely due to concern over supply as plantations in some regions of Malaysia have been shut to contain the spread of COVID-19, said analysts.

Mustard futures on NCDEX closed over 1% lower because of rising arrival in spot markets, analysts said.

Most mandis in Rajasthan, the top grower, are operational and farmers are thronging with the new mustard crop, traders said. 

The following table details prices of edible oils and oilseeds at 1705 IST, in rupees, and the difference compared with the previous session:

End

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

Edited by Subham Mitra

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