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Weekly Edible Oil Outlook: Mixed; soybean seen up on bulk demand

Informist, Wednesday, Oct 27, 2021


By S. Anirudh Iyer


NEW DELHI – Futures contracts of most components of the edible oil basket on the National Commodity and Derivatives Exchange and the Multi Commodity Exchange are likely to trade on a mixed note in the coming week, analysts said. 


* Demand for CRUDE PALM OIL on the MCX and REFINED SOYOIL on the NCDEX is likely to support prices till Diwali, but an increase in supply in domestic markets may cap the rise in prices. 


* Also, demand from bulk buyers has marginally declined because they have already purchased the commodity as per their requirements, they said. 


* SOYBEAN prices are likely to be supported with demand from crushers expected to increase after Diwali as arrivals of the oilseed improve in spot markets. Also, demand from the poultry sector for soymeal, a derivative of the oilseed, is expected to increase after Diwali, which may support prices. 


* MUSTARD prices are likely to remain under pressure as expectations of robust sowing in the upcoming 2021-22 (Jul-Jun) rabi season may weigh on sentiment. However, demand for mustard oil during the winter may prevent a sharp fall in prices. 


* The overall sentiment for the edible oil complex is likely to turn bearish as several measures taken by government are likely to weigh on prices going ahead. 


* The Centre has imposed stockholding limits on edible oil and oilseeds and cut the effective import duty on crude and refined variants of edible oil as a step towards ensuring the commodity is available at affordable prices to consumers. 


The following table details the support and resistance levels for the upcoming five to six sessions, and prices of the contracts as of 1343 IST:


ContractUNIT(in kg)EXCHANGESUPPORT (in rupees)RESISTANCE(in rupees)



Soybean (Nov)100NCDEX4,9005,6005,279Refined Soyoil (Nov)10NCDEX1,2001,3201,257Crude palm oil (Nov)10MCX1,0801,1601,125Mustard (Nov)100NCDEX——8,380




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


Edited by Avishek Dutta


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Source: Cogencis

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