MUMBAI (Commoditiescontrol) - India edible oil futures dropped in the early trade on domestic bourses due to estimates of record oilseed production for 2016-17.
Sentiment was weak after Ministry of Agriculture has revised its oilseed production estimate 33 percent higher in its second advance estimate.
Oilseed output for 2016-17 is now seen at 336 lakh tonnes against 253 lakh tonnes in 2015-16 crop year.
The big oilseed supply likely to ease supply concern in coming month. Indian dependency on imports is also likely to ease in 2016-17 oil marketing year (Nov-Oct)
In addition to it, Malaysian palm oil futures close tad higher at mid-day break, while U.S soy oil was almost flat during early Asian trade after weakness of 0.58 percent previous session.
At local bourse, crude palm oil most active February contract on the Multi Commodity Exchange Ltd (MCX) was lower 0.77 percent at Rs 566.7/10kg against Rs 571.1 on previous session. The contract so far has traded in range of Rs 566.3-570
Refined soy oil March contract on the National Commodity & Derivatives Exchange Ltd (NCDEX) was down 0.76 percent at Rs 674.7/10kg after trading in range of Rs 674.5-678.8
According to CC analyst, crude Palm Oil (CPO) February contract trend is down with support seen at Rs 567-560 and resistance is placed at Rs 574-581. Refined soy oil March contract trend is down with support at Rs 674-666 while resistance is placed at Rs 683-692.
(By Commoditiescontrol Bureau; +91-22-40015516)