Mumbai (commoditiescontrol) - A down trend was witnessed in edible oil market this week on concern about slowing demand and rising production. CRUDE PALM OIL: Crude palm oil witnessed heavy selling pressure this week on various sluggish fundamentals for the commodity. Malaysian palm oil futures dropped, on expectations of rising production and slow export demand. Malaysia crude palm oil futures closed 2.35 percent lower this week. According to market participant fundamentally production is inching up but exports are declining. Malaysia's palm oil exports in 1-25 March were down 1.20% Versus same period last month, cargo surveyor Intertek services (ITS) said in its report. In other cues U.S soy oil futures dropped 0.43 percent this week on rising stock with crushers due to high crushing during February month. Market was also pressured by improving condition in South America raising prospects of much better crop resulting in higher supply of edible oil. According to CC-Analyst, crude palm oil may extend its weakness in coming days on concern about demand coupled with outlook of rising supply of edible oil globally. According to market participants, outlook for regional oil is fragile on account of slow demand coupled with low price gap with other oil. In domestic market, traders opted to stay away from market on anticipation of further price fall as supply of edible oil set to rise in coming weeks, whereas local supply is sufficient to meet demand. Market will also feel pressure as new crop arrivals of mustard seed has started and likely to rise in coming days and improve supply of mustard oil. RBD Palmolein prices was down 1.70 percent at Kandla port in rupee terms this week tracking weakness in Malaysian market. On the other hand, palm oil demand in local market was weak as traders and stockist opted to stay away from big commitments due to low price gap in import cost. In futures market, Crude palm oil most active March contract on Multi Commodity Exchange (MCX) close flat at Rs 533.40 during the week. NEXT WEEK: Palm oil market likely to trade with negative sentiment on tepid demand coupled with futures market trading on subdued tone.
REFINED SOY OIL: Refined soy oil witnessed down-trend in benchmark Indore market of Madhya Pradesh due to weak sentiment in oil complex. CBOT soy oil futures closed down 0.43 percent this week largely pressured by rising stock with U.S plants due to better crushing in February. In addition to it, supply of edible oil seen easing as improving weather condition in South America may speed up harvesting. Demand for refined soy oil was weak as market participants opted to stay away from any big commitments as availability of edible oil supply seen easing globally. Further to it, local supply of edible oil is sufficient to meet any immediate demand, due to which buyers are expecting supply of edible oil is easily available. However the other rival mustard oil price gap has also increased to Rs 12/Kg against Rs Rs 7 from previous week so demand will be shifting to soyoil which will support prices at lower level. 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 March contract on the National Commodity & Derivatives Exchange Ltd (NCDEX) was lower 0.15 percent this week, while forward April contract was down 0.55 percent. NEXT WEEK: Outlook for soy oil seen weak amid rising supply of edible oil globally. (By Commoditiescontrol Bureau; +91-22-40015516)
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