Soyoil futures backpedaled with the rest of the soy complex, with speculative selling featured in a broad sell-off in commodities. July soyoil settled 0.88 cent, or 2.33%, lower at 36.78 cents per pound(CME).
India Edible Oil Prices Steady; High Stocks, Low Demand Weighs
Indian edible oil prices were little changed for the week as high stocks erased gains stemming from firm overseas markets.
Indian edible oil prices mostly track overseas trends as the country imports nearly half its annual vegetable oil requirement. Palm prices rose 1.6% in Malaysia this week, but traders said a correction was imminent due to a likely increase in end-May palm oil inventory levels.
According to the latest count, edible oil stocks in major Indian ports as of May 1 were 575,000 tons, while another 650,000 tons have been contracted for imports. Also, higher imports mean 14.5 million tons of oilseeds in India are awaiting crushing.
India's total vegetable oil imports are projected to rise to 9 million tons in the oil marketing year through October, up from a record 8.66 million tons in 2008-09.
"Weak soymeal export demand and expectations of a normal monsoon will weigh on prices in the near-term," an Indore-based trader said.
Meanwhile, government data released Friday showed India's summer oilseed crop fell to 83,700 hectares as of June 4, down from 127,000 hectares a year earlier.
Planting of soybean, the main oilseed sown in the summer season, begins in June. The crop is harvested in October.
On Friday, the price of crude palm oil fell to INR37,700 a ton from INR37,900 last week, while refined soyoil was unchanged at INR42,800 a ton.
The price of refined, bleached and deodorized palm olein was INR40,300 a ton, up from INR40,200 the previous week.
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