NCDEX Soy Oil Edges Lower On Subdued Demand: April 22, 2012

NCDEX May soy oil futures traded lower on account of bearishness in the other edible oils amidst weakness in overseas market due to lower demand from European Union.

The import of edible oils in the month of March 2012 is reported at 702,335 tons compared to 412,088 tons in March 2011 up by 70%.

The overall import of edible oils during November 2011 to March 2012 was 3,705,739 tonnes compared to 3,024,496 tonnes i.e. up by 22.5%. Average crude palm oil import prices was 1172 per tonne (CIF) in the month of March at Indian ports, it was higher than $1148 per tonne in February.

However, crude soybean oil prices were 1283/tonnes in the month of March, slightly down as compared to 1285/tonnes in the February.

Malaysian palm oil stocks dropped below the 2-million-tonne mark for the first time this year, reinforcing views of a tight global supply amid a lower soy crop in drought-hit South America.

As per Intertek exports of Malaysian palm oil products for April 1-20 fell 5.6 percent to 8.44 lakh tonnes compared with 8.96 tonnes shipped during March 1-20.

NCDEX Soybean Regains On Global Cues

NCDEX soybean futures witnessed mixed trades throughout the day and ended 0.62% higher due to firmness in the international prices.

Improved buying by China also supported prices. Arrivals in major mandis were 40,000 bags in Madhya Pradesh, 35,000 bags in Maharashtra and 1,000 bags in Rajasthan (1 bag=100 kg).

As per WASDE (USDA), global oilseed production for 2011/12 is projected at 440.6 million tons, down 5.2 million from last month.

Global soybean ending stocks are projected at 55.5 million tons, down 1.8 million from last month, and down 13.6 million tons from last year.

As per Oil World forecasts, Argentina's 2012 soybean crop at 44.0 million tonnes, down from 49.2 million in 2011. Brazil's crop is forecast at 65.0 million tonnes from 75.3 million tonnes in 2011.