October 8, 2007
India edible oil prices down as buyers await new soy crop
Indian edible oil prices eased in the week to Friday (October 5) as demand in the major centres of the country dried up as buyers awaited a fall in prices when the new soy crop becomes available, traders and market watchers said.
"Edible oil prices had rallied in the last couple of weeks tracking sharp gains in soymeal. Hence, demand in the physical markets was sluggish at these prices and most traders preferred to wait for a fall in prices once new soy crop hits the market," said a trader from the major soy growing province of Madhya Pradesh.
Already, daily arrivals in the province are at 25,000-30,000 bags of 100 kilograms each. These are expected to rise to 300,000-500,000 bags a day by the end of October.
India's oilseed production is expected to rise this year with the latest government data stating that oilseeds have been planted on 17.59 million hectares, up from 16.35 million hectares last year.
"Overall weakness in international palm oil prices also weighed on Indian edible oil rates," said Harish Galipelli, head of research of Karvy Comtrade, a local commodity brokerage.
However, global oilseed prices are likely to be supported in the coming weeks as world production of the top 10 oilseeds is likely to witness an unprecedented fall of 13 million metric tonnes to 391 million tonnes this season due to bad weather conditions during growth, industry experts said.
Friday, local groundnut oil prices were at 71,000 rupees (US$1,798) a tonne, down from INR72,500/tonne (US$63.73486) a week earlier.
Crude palm oil was at INR41,500/tonne, down from INR42,500/tonne a week earlier.
Refined, bleached and deodorized palm olein was at INR45,300/tonne, flat from INR45,300/tonne a week earlier.
Refined soyoil prices were at INR46,500/tonne, down from INR48,000/tonne a week earlier.
Crude soyoil prices were at INR44,800/tonne, down from INR46,000/tonne a week earlier.
US$1 = 39.225 Indian Rupee (INR)
As of October 8, 2007
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