Mumbai, 18 May (Commoditiescontrol):Soy oil prices continued their upward trajectory for the third day in a row, fueled by anticipated soybean crop losses in Brazil and ongoing disruptions at the Rio Grande port. The rally was further amplified by strikes in Argentina, which hindered soybean meal and oil supply.
CBOT July soyoil concluded the week at 45.27 cents per pound, marking a 0.75 cent increase and the second consecutive weekly gain. This upward trend is echoed in other soy products, with July soybeans climbing 9 cents per bushel and July soy meal settling $1.1 higher.
As per trade sources, funds were net buyers of 3000 contracts of soy oil,4500 contracts of soybean and 1000 contracts of soy oil.
ICE canola futures also experienced a second session of gains, bolstered by strength in global vegetable oil markets and heightened exporter demand.
Malaysian palm oil futures followed suit, closing 2.26% higher, driven by gains in Dalian and Chicago markets.
Euro next Rapeseed futures also concluded the day on a positive note.
Meanwhile, the Rio Grande port authority stated that the full extent of recent flooding on cargo operations will be evaluated at the end of May. Severe weather conditions have hampered activities at the port, impacting soy exports and fertilizer imports.
In Argentina, labor strikes in certain sectors have disrupted the supply of soybean meal and oil, further contributing to the price surge.
The ongoing rally in soy oil is due to short covering in an oversold market, triggered by supply disruptions from major exporters Brazil and Argentina. However, with the normalization of supply from these regions, prices should resume a downward trend due to ample global supply and decreasing demand as biodiesel feedstock in the US.
(By Commoditiescontrol Bureau: 09820130172)
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