Mumbai (Commoditiescontrol) – Indian mustard futures extends weak trade with significant improvement in arrival pressure and weak veg oilseed complex. At the end of week, mustard seed April’19 futures fell by almost INR 80 and closed at INR 3766 from previous week close of INR 3846.
Total average daily arrivals in country improved significantly to 7.50 lakh bags vs. 5.5 lakh bags reported previous week out of which Rajasthan accounted for 3.6 lakh, MP – 70 thousand bags, UP- 1.70 Lakh bags, Haryana and Punjab 30 thousand bags, Gujarat -45 thousand bags while other states contributing 75 thousand bags.
Meanwhile, The Solvent Extractors’ Association of India has compiled the Import data of Vegetable Oils (edible & non-edible) for the month of February 2019. Import of vegetable oils during February 2019 is reported at 1,242,533 tons compared to 1,157,044 tons in February 2018, consisting 1,182,062 tons of edible oils and 60,471 tons of non-edible oils i.e. up by 7.4%. The overall import of vegetable oils during November 2018 to February 2019 is reported at 4,862,849 tons compared to 4,785,778 tons i.e. up by 1.61%, thanks to higher import duty.
The stock of edible oils as on 1st March, 2019 at various ports is estimated at 915,000 tons (CPO 470,000 tons, RBD Palmolein 235,000 tons, Degummed Soybean Oil 90,000 tons and Crude Sunflower Oil 120,000 tons to and about 12,80,000 tons in pipelines.
Total stock at ports and in pipelines is reported at 2,195,000 tons, increased by 85,000 tons from 2,110,000 tons as on 1st February, 2019. India’s monthly requirement is about 19.0 lakh tons and operate at 30 days stock against which currently holding stock over 21.95 lakh tons equal to 35 days requirements. Huge port stocks shall keep the overall trend on downside note.
At global front, Canadian farmers are expected to plant 1% more rapeseed in the next marketing year, according to the USDA, despite being in dispute with its biggest buyer, China. The planted area is expected to rise from 9.12 million acres to 9.3 million acres, with production increasing to 20.5 million mt in the 2019/20 marketing year versus 20.3 million mt in the previous marketing yea. Canada is locked in a diplomatic dispute with China over the arrest of a Chinese telecoms executive, a spat that has escalated and seen the government ban Canadian rapeseed exporter Richardson International from selling the oilseed in China. Due to ongoing issues with Canada, Chinese importers have turned to Australian market to fulfill their import requirements.
Despite having a bumper rapeseed crop this year in India and shift in Chinese demand to other nations, the export of rapeseed and meal to China from India is unlikely to resume during current financial year as procedure for registration with MoA, China is too cumbersome, lengthy and time consuming to complete all formalities.
Considering overall fundamentals, mustard futures are likely to trade with negative bias in coming week.
0 Comments 
Post Comment 
