Mumbai (commoditiescontrol) - Edible oil prices closed higher this week in volatile trade due to lower level buying interest.
CRUDE PALM OIL: Crude palm oil rose this week in benchmark Malaysia and domestic market on rising concern about low production, due to last year El-Nino dry weather impact, affecting palm yields and will be subsidized by end of first quarter of 2017. In addition to it, heavy volatility in dollar movement kept prices range-bound and funds were vulnerable for price direction. In addition to it, cargo surveyors have reported Malaysian palm oil export during 1-15 March up 1.10 percent. India imported 18.5% more of refined oil and 22% more of CPO in Feb compared to Jan. Indonesia Pertamina and AKR should be releasing biodiesel suppliers and quantity anytime this month to cover the period May to Oct 2017, but don't expect too much.
Malaysian palm oil futures benchmark March contract close 1.20 percent higher during the week while RBD palmolein FOB was up. Upside for palm oil futures was capped as malaysian ringgit turned strong this week by 0.31 percent during the week. India vegetable oils (edible & non edible) during the first four month of current oil marketing year, started from November dropped 8 percent at 4,680,451 tonnes against 5,098,400 tonnes same period a year ago, Solvent Extractors' Association (SEA) said today. Edible oil import for the month of February 2017 is up by 17 percent at 1,270,443 tonnes versus 1,082,009 tonnes previous year. Similarly RBD Palmolein import in the month of February 2017 is 2,33,313 tonnes up by 18.65 percent versus 1,96,623 tonnes previous year. Rising import of RBD Palmolein may pressure prices in near-term, but big downside is not seen, as low price gap with other edible oil in complex is dividing demand, the trader said. Palm oil (CPO+RBD) stocks at various ports of the country are mostly steady. According to data received from cargo surveyor palm oil stocks as on March 6 totaled at 2.41 lakh tonnes against 2.84 lakh tonnes on February 27. Demand for palm oil which is currently weak due to cold weather in northen parts of India, likely to improve in coming weeks, once temperature starts rising coupled with squeezed supply from producing country's and low import, prices likely to remain stable to positive in near-term. Crude palm oil prices at domestic bourses were up inline with benchmark Malaysian market. Most active March delivery contract on Multi Commodity Exchange (MCX) closed 0.34 percent higher. NEXT WEEK: Volatility likely to continue in palm oil market as funds will be focusing on Argentina soy oil supply, March 1-20 palm oil export data from SGS and ITS. In addition to it, dollar movement will also be in focus as Fed Speeches Reiterate Rate Hike Intent. REFINED SOY OIL: Refined soy oil closed flat week in benchmark Indore market of Madhya Pradesh on limited buying interest. U.S futures market closed flat this week which recovered from the lows mid week supported the market sentiment. The major setback for soy oil demand at higher level was weak demand in spot market, specially from remote and interiors parts of the country coupled with other states where consumption of other edible oil was more. The other rival mustard oil price gap has also dropped to Rs 7/Kg against Rs 10 from previous month. In addition soy oil port stock at various ports of the country has declined to 1.18 lakh tonnes from 1.20 on weekly basis as on March 06 but still sufficient to meet the demand which is weighing on soyoil prices. In futures market, soy oil most active April contract on the National Commodity & Derivatives Exchange Ltd (NCDEX) were up 1.3 percent this week, while forward March contract was higher 1.28 percent. NEXT WEEK: soy oil likely to trade range-bound with volatility as low demand at higher level will pressure, while positive global cues may support. Rupee will also play major role in price movement. Over-all prime focus will remain on demand. (By Commoditiescontrol Bureau; +91-22-40015516)
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