Soya oil and soyabean traded low on weak foreign markets and sluggish buying even as arrivals continued to remain weak on Monday. Soya refined ruled stable at Rs 735-740 for 10 kg. Soya solvent also ruled stable at Rs 735-740 for 10 kg on scattered buying support.
Contrary to the bearish sentiment in the physical market, soya oil traded higher in the futures market on improved buying. Soya refined’s September contract on the National Board of Trade closed Rs 5.40 higher at Rs 788.10. The Board on Monday saw a second cut of the month at Rs 773.60. On the National Commodity and Derivatives Exchange (NCDEX), soya oil’s August and September contracts closed at Rs 778.50 (up Rs 2.40) and Rs 787.20 (up Rs 1.40).
Given the rise in soya oil futures and improved foreign markets, soya oil may gain on rise in buying support on Tuesday. According to Mukesh Purohit, an Indore-based soya oil trader, any steep decline in soya oil prices appears unlikely given the upcoming festival demand and dip in demand for cotton and palm oil on account of chilly weather.
Soya seeds also traded lower at Rs 4,370-4,450 a quintal on sluggish demand for soyameal even as arrival remained weak at 10,000-15,000 quintals on account of rains in the State. In Indore mandis , 400 bags arrived; 800 bags arrived in Ujjain; 1,000 bags in Dewas; and 600 bags in Sehore. Plant deliveries of soyabean traded lower at Rs 4,500-4,550 a quintal on weak demand from crushers. As compared with three days ago, plant deliveries are ruling Rs 50 lower. Soyabean’s August and October contracts on the NCDEX closed at Rs 4,566 (down Rs 47) and Rs 3,946 a quintal (down Rs 35). Soyameal continued to trade lower at Rs 40,500-40,800 a quintal in the domestic market on weak demand from poultry manufacturers.