Soyoil futures inched lower, backpedaling from earlier gains. Spillover strength from crude oil futures supported prices until the evening up of positions in late dealings dropped prices into negative territory, analysts said. July soyoil settled 0.01 cent, or 0.03%, lower at 37.16 cents per pound.(Source: CME)
India Edible Oil Prices Up On Delay In Crop Sowing, Lower Imports(Source: CME)
Edible oil prices in India rose this week because of a delay in sowing of summer-sown oilseed crops in major producing regions due to poor monsoon rains and a fall in imports.
The price of crude palm oil rose to INR36,500 a metric ton Friday from INR36,400 a week earlier, while that of refined soyoil increased to INR42,200 a ton from INR41,500. The price of refined, bleached and deodorized palm olein rose to INR40,400 a ton from INR39,600.
Monsoon rains in east Madhya Pradesh were 41% below normal, while in west Madhya Pradesh, they were 75% below normal. The central Indian state of Madhya Pradesh is the largest producer of soybean, the main summer-sown oilseed crop.
"We expect sowing to pick up in coming weeks as the rains are improving," said a trader based in Indore, a large trading hub in Madhya Pradesh.
Soybean sowing in India starts in June with the onset of the monsoon.
The country's weather office, in its latest update, said central India is likely to get scattered showers in the next five days.
Lower imports in May are also supporting the prices, said another trader.
Edible oil imports in May slipped 23% from a year earlier to 539,169 tons, according to the Solvent Extractors' Association. Imports of crude palm oil declined 29% to 314,581 tons and refined, bleached and deodorized palm olein fell 61% to 56,284 tons.
The South Asian nation is the world's second-largest edible oil consumer after China and meets more than half of its requirement through imports. It imports palm oil mainly from Indonesia and Malaysia, and soyoil mostly from Brazil and Argentina.
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