Commodity funds bought an estimated 1,000 soymeal contracts and 2,000 soyoil contracts. Weakness in crude oil kept a lid on soyoil, a trader says. Dec soymeal closed up $1, or 0.4%, at $283.30 per short ton. Dec soyoil rose 0.06 to 39.76 cents per pound.(Source: CME)
India Edible Oil Prices Rise On Firm Overseas, Poor Rains In Key State.(Source: CME)
Edible oil prices in India rose during the week ended Friday, tracking mostly firm overseas markets and due to poor rains in the major soybean producing state of Madhya Pradesh.
Crude palm oil was at INR39,500 a metric ton Friday, up from INR37,500 a week earlier, while the price of refined soyoil increased to INR46,200 a ton from INR44,500. The price of refined, bleached and deodorized palm olein rose to INR43,000 a ton from INR41,500.
Soy futures on the Chicago Board of Trade were higher because of tight supplies, demand and the uncertainty of weather during the U.S. soybean crop's critical development phase. Malaysian crude palm oil futures gained on increased demand as Asian countries gear up for major festive periods.
India, the world's second-largest edible oil consumer after China, mostly tracks overseas market as it imports more than half of its annual edible oil requirement.
Physical market prices were firm as farmers held back stocks in anticipation of a further rise in prices, said Badruddin Khan, an analyst with Angel Commodities.
So far in the monsoon season, rainfall in Madhya Pradesh has been about 30% below the 50-year average, according to the India Meteorological Department.
"Anticipation of a slow pace of sowing in coming days due to low rains in Madhya Pradesh also provided support to bulls for the short term," said Khan.
Although total sowing of oilseeds was higher as of July 22, soybean area was lower due to weak rains, traders said.
Sowing of oilseeds in India rose to 12.95 million hectares as of July 22 from 12.39 million a year earlier, government data showed. It didn't provide the breakup for different oilseeds.
Soybean sowing in India starts in June and continues through July.
Palm oil ends lows on weaker exports; weather eyed
KUALA LUMPUR, July 23 (Reuters) - Malaysian crude palm oil fell 0.8 percent on expectations of lower export data next week although losses were limited by concerns that heavier rains may curb output growth.
"Exports could weaken a little due to the recent run-up in the cash market and some players are taking profits on weaker crude oil prices globally," said a trader with a foreign brokerage.
Soybean sowing down 3.8 pct in India's Madhya Pradesh
BHOPAL, India, July 23 (Reuters) - Soybean sowing in India's largest producer Madhya Pradesh state was down by 3.8 percent by July 19 as patchy rains delayed sowing operations, a senior government official told Reuters.
Soybean acreage in the state stood at 4.78 million hectares on July 19, down from 4.97 million hectares in the same period a year ago, said H.P. Bamania, additional director at the state's farm department.
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