Refined soya oil spot prices may decline from the current higher level in the next few days on weak international markets, coupled with expected heavy fresh inflows of soya and mustard seeds into various mandis in the central region.
In the Mumbai market, refined soy oil was quoted at Rs 482 per 10 kg, up from Rs 476 quoted last Tuesday, while refined soy oil of the November contracts were quoted at Rs 485.50 per 10 kg on Monday. NCDEX and MCX soya oil futures markets ended lower on Monday in tandem with weak international trends. The CIF prices of crude soy oil for the November shipment declined to $957 a tonne on Monday, down $4 over the previous day.
?Spot prices of refined soy oil and RBD palmolein have moved up significantly in the last few days, mainly on shortage of crude oils for processing, and as a result, oil processors have increased their prices. However, local demand was low. I think prices may move down marginally till the next week on some inflow pressure of cottonseed oil into the markets, but overall prices may remain firm next month,? a local broker said. Recently, the government announced that STC and other agencies will import some parcels of imported edible oils to meet festival demand. Nafed has decided to sell about 5,000 tonne of mustard on a daily basis in the local market.
?I think the government?s market intervention will provide some support to keep price under control,? a trader said. In the domestic market, inflows of soya beans are in full swing in Madhya Pradesh, Maharashtra, and Rajasthan. Daily arrivals are about 10-11 lakh bags, while daily arrivals of mustard are around 16,000-17,000 bags.