Mumbai, May 14, (Commoditiescontrol):CBOT July soyoil futures jumped 0.97 cents to close at 44.52 cents per pound, driven by short covering and spread trading. This surge came despite a mixed performance in the broader oilseed market.
July soybean futures saw a modest increase of 2-3/4 cents, settling at $12.16-1/4 per bushel. However, soymeal July futures took a hit, declining by $4 to settle at $367.7 per short ton.
Market activity revealed net buying in soybean and soy oil futures, with 1,000 and 3,500 contracts bought respectively. In contrast, soymeal futures saw net selling of 2,500 contracts.
Argentine soy oil displayed a basis of -420 (sellers) narrating no change in previous day, with corresponding FOB values at $895.09($867.53). On the other hand, Brazilian soy oil trading exhibited a basis of -400(-470), with FOB values at $899.50($878.58).
In the global market, ICE canola futures closed higher, fueled by a 2% jump in U.S. soyoil futures. This upward momentum managed to counterbalance pressure from hedge-related selling by Canadian canola growers.
Malaysian palm oil futures faced a decline due to increased production, lower export figures, and a strengthening Malaysian ringgit. The benchmark August contract closed at 3,804 ringgit per metric ton, a decrease of 1.48% or 52 ringgit.
Euronext rapeseed futures also experienced a dip, with the August 2024 contract settling at Euro 473.50 per metric ton, down 1.5 Euro/Mt.
eanwhile, the Dalian Commodity Exchange witnessed a rise in most-active soy oil and palm oil contracts, gaining 1.66% and 1.43% respectively.
Market analysts attribute the recent price recovery in CBOT soy oil to technical buying triggered by expectations of supply disruptions from Brazil and Argentina. This sentiment is reflected in the declining discounts compared to CBOT futures in these origins. However, the sustainability of current price levels remains highly dependent on increased U.S. soyoil demand for biodiesel production.
(By Commoditiescontrol Bureau; +91-9820130172)
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