November 23, 2009

 

 

Indian edible oil prices rose during the week ended Friday (November 20) mirroring gains in overseas oilseeds markets, due to lower area under winter oilseed crop.

 

A revival in soymeal export demand also aided the rise in the prices during the week, traders said.

 

"Soy crushing plants are aggressively buying in the local market on good soymeal export demand from Southeast Asian countries," said an executive at a global trading firm.

 

Indian prices mostly track overseas markets as the country imports nearly half of its annual vegetable oil needs of 15 million tonnes.

 

Meanwhile, area under rapeseed, the main oilseed grown in winter, declined to 5.4 million hectares as of Nov. 19 from 5.6 million hectares a year earlier.

 

Sunflower plantings fell to 562,000 hectares from 809,000 hectares, while groundnut area declined 24 percent to 206,000 hectares.

 

However, record vegetable oil imports continue to trim gains.

 

India's vegetable oil imports rose 37 percent in the marketing year ended Oct. 31 to a record 8.66 million tonnes, the Solvent Extractors' Association said earlier this week.

 

Imports of edible oil were up 46 percent to 8.18 million tonnes during the year, and analysts expect imports to remain at the same level in 2009-2010 also due to rising consumption and lower prices.

 

Refined soyoil was quoted at INR47,000 (US$1,012) a tonne, up from INR44,000 (US$947.86)/tonne a week ago.

 

Refined, bleached and deodorized palm olein prices rose to INR37,300/tonne from INR35,500/tonne last week, while crude palm oil rose to INR34,000/tonne from INR31,700/tonne last week.

 

US$1 = INR46.42 (Nov 23)