MUMBAI (Commodity Online): Weakness continues to prevail in the whole oilseeds complex including soy oil. Weakness in the US dollar against Indian Rupee and some recent rains in the Argentina and Brazil’s soybean growing areas.
In India too, the north India has seen widespread rains during past fortnight and cold wave prevails in this region. This is beneficial for the Rabi oilseeds crop.
Weakness is also seen in the CPO prices at BMD, Malaysia due to prospects of increase in production in Both Malaysia as well as Indonesia during this year. Thus all these factors have a combined effect on the edible oil prices.
Further in India undue upside movement was seen which was not supported by fundamentals of demand and supply. Thus the prices had to see downward movement sooner or later.
We expect that import of the edible oil will increase during January and onward that will give ample relief at supply front. Then prices may further cool down. ITS Malaysia 1-15 January Palm Oil export is down by 11% at 5.91 LT vs 6.68 LT during same period last month.
On Thursday market is expected to trade weak in the morning hours, however by the end of the day some improvement may be seen.
Courtesy:Religare Commodities
