India Edible Oil: NCDEX soybean hits 2-mo high on output concerns

Informist, Tuesday, Feb 15, 2022

By Rahul Dhuri

MUMBAI – Futures contracts of soybean rose on the National Commodity and Derivative Exchange today, while prices of other components of the edible oil basket traded on the NCDEX and Multi Commodity Exchange of India were unavailable. 

* The most active February contract of SOYBEAN rose to a two-month high of 6,750 rupees per 100 kg on the NCDEX, due to concerns over output from Brazil, because of drought conditions in the country. Brazil is the largest producer of soybean.  

* The overall sentiment for soyoil remains bullish due to persisting concerns over production of soybean, which is crushed to make soyoil. 

* MUSTARD, REFINED SOYOIL contracts on NCDEX, and CRUDE PALM OIL contracts on MCX were unavailable as no trade happened today. 

* Prices of mustard were steady across key spot markets of the country today, despite higher arrivals. In the benchmark market of Jaipur, the oilseed was sold at 8,000 rupees per 100 kg, unchanged from Monday, a trader with Manishankar Oils said.  

* Arrivals were pegged at 215,000 bags (1 bag = 84 kg), compared with 225,000 bags on Monday. However, arrivals were mostly of the new season crop and as such, were of inferior quality, because of which they did not garner demand in the markets, traders said.

* Crude palm oil is likely to trade higher in the near future due to concerns about production in Malaysia on account of restrictions on foreign labour, dealers said. Malaysia is the second-largest producer of crude palm oil in the world.

At 1705 IST:

–February contract of soybean ended 2.4% higher at 6,750 rupees per 100 kg on NCDEX

End

Edited by Aditya Sakorkar

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Source: Cogencis