Speculators’ involvement kept soya oil prices firm in Indore mandis on Monday even as demand in soya oil remained weak at a higher rate.
On Monday, soya refined ruled at Rs 720-25 for 10 kg, while soya solvent at Rs 690-95.
However, soya oil is up Rs 5, even as demand in soya refined and solvent continues to be weak at higher rates.
Even though the Malaysian palm oil market was closed today, weak projections and profit taking at higher rate dragged soya oil prices in the futures.
On the NBOT, soya refined February contract closed lower at Rs 729.20 for 10 kg after opening at Rs 734.50 in the morning.
Similarly on the NCDEX, soya oil futures traded lower with its February and March contracts closing at Rs 725.70 (down Rs 3.90) and Rs 703 (down Rs 7.65).
Soyabean on the other hand ruled flat on weak demand in soya DOC and slack buying support from the plants.
On Monday, soyabean in State mandis ruled at Rs 3,160-3,250 a quintal (down Rs 20 from last week) amid arrival of 1.25 lakh bags.
Plant deliveries in soyabean also ruled firm at Rs 3,300-3,350 (up Rs 50-70 from last week).
Notwithstanding bumper crop of soyabean this year which is expected to be around 126 lakh tonnes, soyabean is ruling higher, with stockists building inventories.
This is evident from decline in release of soyabean in the mandis by the traders and farmers; against an output of 126 lakh tonnes, only 60-65 lakh tonnes have been offloaded in mandis.
In futures, soya seeds declined on profit booking at the higher rate with February and March contracts of soyabean on the NCDEX closing at Rs 3,245.50 (down Rs 7) and Rs 3,154.50 (down Rs 28) respectively.
Soyameal continues to rule sluggish on slack demand with its price on the domestic market on Monday being quoted at Rs 26,500-800, while it was Rs 28,000-28,500 on the port.