Mumbai, May 7, (Commoditiescontrol): CBOT July soyoil futures experienced a decent increase on Monday, gaining 0.76 cents to close at 43.84 cents per pound. This rise is attributed to technical buying in an oversold market and some upward pressure from rising soybean futures.
Soybean futures experienced a significant surge on the Chicago Board of Trade (CBOT), fueled by intensifying concerns about flooding that could damage remaining unharvested crops in Brazil's Rio Grande do Sul state. CBOT July soybean futures concluded the session 33-3/4 cents higher at $12.48-3/4 per bushel, marking their highest level since January.
CBOT July soymeal also settled substantially higher, increasing by $15.40 to reach $387.60 per short ton.
Funds were net buyers of 14000 contracts of soybeans,6500 contacts of soymeal and 2500 contracts of soy oil.
Meanwhile, in South America, soy oil trading from Argentina and Brazil reflected varying bases and FOB values. Argentine soy oil trading indicated a basis of -600 (sellers) and -670 (buyers), with FOB values at $827.61 (sellers) and $812.17 (buyers). Similarly, Brazilian soy oil trading showcased a basis of -500 (sellers) and -650 (buyers), with FOB values noted at $838.63 (sellers) and $816.582 (buyers).
ICE canola futures continued their upward trend, rising for the fourth consecutive session due to technical buying, short covering, and support from the soybean rally.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange increasing by 19 ringgit (0.49%) to 3,863 ringgit ($815.50) per metric ton. Additionally, both Dalian's most-active soy oil contract and soy oil prices on the Chicago Board of Trade saw gains.
ICE canola futures continued their upward trend, rising for the fourth consecutive session due to technical buying, short covering, and support from the soybean rally.
The current recovery in soy oil prices is likely temporary. It stems from technical buying in an oversold market and short-term concerns related to potential crop damage in Brazil. However, declining demand for soyoil as biofuel feedstock in the US, coupled with Brazil's recent decision to reduce biodiesel blending in fossil fuels in Rio Grande do Sul, will likely weigh on soy oil demand and limit any sustained price gains.
(By Commoditiescontrol Bureau; +91-9820130172)
0 Comments 
Post Comment 
