Refined soy oil weakens

Written by Commodities Bureau | Mumbai, Jul 30 | Updated: Jul 31 2007, 05:03am hrs
Refined soy oil futures prices on the NCDEX platform have moved down gradually last week on expectation of good crop prospects for soya bean supported by steady inflows of imported oils, sources said.

Refined Soy oil August 2007 contracts were down Rs 7 to trade around Rs 505 per 10 kg on Saturday over previous week while September 2007 contracts were also down Rs 6 to trade around Rs 506 per 10 kg. Similarly, October 2007 contracts slipped below Rs 500-mark and quoted at Rs 498 per 10 kg on Saturday, down by Rs 7 per 10 kg mainly on pressure of imported soy oil, cut in import duty on soya oil and favorable weather for the soya bean crop in the country. Spot price at Indore was down Rs 4 to trade around Rs 402 per 10 kg on Monday.

After a long dry spell, farmers were waiting for rains past few days and there are reports of fresh spell of rains in western India which is very crucial and beneficial to the crop, a local broker said.

August contracts volume has gone down from 25,000 tonne to 15,000 tonne and Open Interest has also reduced to 39,000 tonne from 60,000 tonne. Market participants have shifted their trading interest from August to September/October contracts, an analyst said.

As per the 4th advance estimates, the total oilseed production for 2006-07 is estimated at 238.8 lakh tonne from previous final estimate (2005-06) of 279.8 lakh tonne. Soya bean has contributed to this increase. Soybean sown area is about 71.67 lakh ha as on 20.07. 2007 as compared to 67.45 lakh ha last year at same period. Refined soy oil prices are expected to fall further during the next week owing to pressure of imported oil at domestic ports and favorable weather for the soybean crop, analyst said.