Weak global cues added pressure in the domestic edible oil complex. US soybean futures stumbled to 6-week lows, fueled by investor selling amid the absence of fresh demand to buoy prices. The combination of seasonal harvest pressure and fears of slumping demand amid a tenuous global economy attracted sellers to the market. CBOT November soy dropped 17 1/2c to $13.20 1/2 a bushel. CBOT December soymeal dropped 1.7% to $344.20/short ton and December soyoil fell 0.5% to 55.34c/pound. The e-cbot December Soya Oil is currently trading lower at 55.02, down 0.32 cents per pound and November Soybean is currently trading at 13.11, down 9 cents per bushel. The Malaysian CPO futures slumped sharply with the November contract is currently quoting lower at MYR 3026, down MYR 40 per tonne. The NYMEX Crude Oil is currently trading sharply down with the November contract is quoting at $84.43, down by $1.49 per barrel.
The NCDEX RSO October contract ended the last day down by 0.11% at Rs 652.90 and the open interest added 4.23%. The contract drifted lower on Thursday's early trading session with contract moving in the range of Rs 651.80-648.20 and the contract is currently trading lower at Rs 649.10, down by Rs 3.80 or 0.58% over the last close. The open interest added 1.67%, indicating short selling. RSO prices breached the 10-day and 20-day EMA's and the next support is at Rs 648 while resistance is at Rs 653.50 per 10 kg.
The October Soybean on NCDEX is currently trading lower at Rs 2249, down by Rs 19.50 or 0.86% over the last close. The MCX CPO October contract is currently quoting lower at Rs 501.50, down Rs 1.90 or 0.38% over the last close.
The total vegetable oils (edible & nonedible) imports from India for the month of August are reported at 817,440 tons compared to 1,065,641 tons in August 2010 i.e. down by 23.2%, consisting of 785,518 tons of edible oils and 31,922 tons of non-edible oils, according to the latest data from the Solvent Extractor's Association (SEA). The overall import of vegetable oils during Nov.'10 to August '11 is reported at 6,860,843 tons compared to 7,447,955 tons during the same period of last year i.e. down by 7.9%.
India's food ministry is backing local refiners' demand for a higher import tax on refined edible oil to prevent cheap foreign supplies from flooding the market, and the food minister said he has already taken up the matter with the finance minister.
