Vegetable oils up on millers buying, global cues

NEW DELHI: Select vegetable oil prices continued to rise in the wholesale oils and oilseeds market, during the week, on increased buying by vanaspati millers amid a firming trend in the overseas markets.

Marketmen said, buying support from vanaspati millers and firming global trend mainly led to a rise in select wholesale edible oil prices in the national capital.

A better trend in Malaysian palm oil and higher advices from the producing regions also supported the uptrend, they said.

Meanwhile, palm oil for July delivery rose 1.6 per cent to USD 790 a metric ton on the Malaysia Derivatives Exchange, aided by China's ban on Argentine soybean oil. China, the world's largest consumer of soya oil, suspended imports from Argentina this month, on quality concerns.

In the national capital, palmolein (rbd) and crude palm oil (ex-kandla) oils gained Rs 10 each at Rs 4,150 and Rs 3,610 per quintal on higher overseas advices.

However, soyabean refined mill delivery (Indore) and soyabean degum (Delhi) remained steady at Rs 4,450 and Rs 4,350 per quintal during the week.

Coconut oil which remained flat during the major part of week, shot up Rs 20 to Rs 960-990 per tin of 15 litres.

India oilseeds seen up on overnight US mkt gains

MUMBAI: Indian oilseed futures are likely to extend the previous session's gains on Friday bolstered by overnight gains in the US market and on worries about the domestic rapeseed crop, analysts said. Soyoil futures, which closed near contract lows, are also likely to extend gains on firm Malaysian palm oil, they said. US soybean futures closed above $10 per bushel for the first time in three-months on Thursday amid bullish technical signals as the spot contract broke chart resistance at its 200 day moving average of $9.96-1/2.

The benchmark July crude palm oil futures on Bursa Malaysia Derivatives Exchange were up 1.37 percent at 2,524 ringgit per tonne at 9:26 a.m. The May soyoil contract on the National Commodity and Derivatives Exchange ended 0.38 percent up at 445 rupees per 10 kg on Thursday, after hitting a contract low of 442.5 rupees earlier in the day. The May soybean contract finished up 0.82 percent at 1,969.5 rupees per 100 kg, while the May rapeseed contract closed 0.38 percent higher at 502.25 rupees per 20 kg.

An industry body said in March the country's rapeseed output in 2010 is expected to rise marginally to 6.3 million tonnes on good weather conditions. Traders said output may be lower than estimates considering the arrivals in spot market. Sluggish meal exports may cap the gains in oilseed complex, analysts said. India's March oilmeal exports slumped 34 percent from a year earlier, falling for the fifth straight month, due to weak demand from Vietnam, Japan, South Korea, Indonesia, Thailand and China, a trade body said.

Cumin drops on weak overseas demand; pepper steady

MUMBAI: Cumin futures were lower in the midday trade on Thursday on hopes of higher output and sluggish overseas demand, analysts said. "Trend looks weak as overseas demand is not supportive. Prices may slip further.

May contract may take support at 11,600 rupees," said an analyst from a local brokerage. Production in 2010 is seen rising to 2.9 million bags of 60 kg each from 2.7 million bags in 2009, the poll showed.

At 2:53 p.m., the most active May cumin contract was down 0.52 percent to 11,720 rupees per 100 kg. At Unjha, the spot benchmark market in Gujarat, cumin dropped 25 rupees to 11,950 rupees per 100 kg. The peak arrival season runs from March-April. Cumin exports in February 2010 dropped 17 percent to 2,500 tonnes on year, the Spices Board said.

PEPPER

Pepper futures were steady on limited supply in the market as farmers awaited higher prices, and on better local demand, but weakness in overseas enquiries restricted the upside, analysts said. "Local demand is good but overseas demand is sluggish because Indian parity is very high," said an analyst from Kotak Commodities Services Ltd.

At 2:53 p.m., the most active May pepper contract was up 0.15 percent to 15,436 rupees per 100 kg. Spot pepper was almost steady at 15,158 rupees per 100 kg in Kochi, a major trading hub in Kerala. Pepper exports in February 2010 fell 3.22 percent to 1,500 tonnes on year, the Spices Board said.

TURMERIC

Turmeric futures were slightly lower in the afternoon trade as traders choose to cash out gains after prices rose more than 9 percent in the last 11 sessions till Wednesday, but limited supply in spot restricted the downside, analysts said.

"Demand in spot market has come down as traders fear more fall in the prices. But in long term prices may rise as supply in the market is limited," said an analyst from a local brokerage.

At 2:56 p.m., the most active May turmeric was down 0.13 percent at 11,981 rupees per 100 kg. In Nizamabad, a major spot market in Andhra Pradesh, the price dropped 200 rupees to 12,212 rupees per 100 kg. Turmeric arrivals usually start in mid-January in small quantities and gain momentum from March. The peak season runs till June. Turmeric exports in February 2010 stood at 2,500 tonnes, down 19 percent from a year ago, according to data from the Spices Board.

Oilseeds, soyoil drop tailing global markets

MUMBAI: Indian oilseed and soyoil futures dropped on Monday, depressed by a fall in the overseas markets and on subdued export demand for meal softening prices in domestic spot markets, analysts said.

"CBOT is down. Malaysian market is in red. All things are putting pressure on domestic oilseed complex," said Vinita Advani, an analyst with Ventura Commodities Pvt Ltd.

U.S corn futures fell nearly 2 per cent on Monday, while wheat and soy slipped about 1 per cent as fears about the fallout of fraud charges against Goldman Sachs hit investor appetite for riskier assets.

Malaysian crude palm oil futures tumbled to an 11-week low as fraud charges against Goldman Sachs prompted investors to book profits in most commodity and equity markets.

The May rapeseed contract on the National Commodity and Derivatives Exchange ended 0.37 per cent lower at 503.8 rupees per 20 kg.

In Jaipur spot market in top producing state of Rajasthan, the price dropped 6.25 rupees to 497.6 rupees per 20 kg.

The May soybean contract ended 1.77 per cent lower at 1,939 rupees per 100 kg, while the May soyoil finished 0.89 per cent down at 443.9 rupees per 10 kg, after hitting a contract low of 443.1 rupees earlier in the day.

In Indore spot market in top producer Madhya Pradesh, soybean price slipped 39 rupees to 1,938 rupees, and soyoil edged lower by 2.7 rupees to 441.5 rupees.

Concerns over domestic rapeseed output and lower-level buying limited the downside, they added.

An industry body said in March the country's rapeseed output in 2010 is expected to rise marginally to 6.3 million tonnes on good weather conditions.

Traders said output may be lower than estimates considering the arrivals in spot market.

The country's March oilmeal exports slumped 34 per cent from a year earlier, falling for the fifth straight month, due to weak demand from Vietnam, Japan, South Korea, Indonesia, Thailand and China, a trade body said.