February 9, 2009
India soyoil prices down on weak demand; palm oil up on Malaysia
Indian soyoil prices fell in the week ended Friday (February 6) on sluggish domestic demand, but palm oil prices moved up, tracking the Malaysian market, said traders.
"Buyers are on the sideline on expectation of a further fall in prices ahead of the arrival of new rapeseed crop," said a trader based in Indore, a large trading hub in the central state of Madhya Pradesh.
Daily arrivals of the new soy crop remained steady at 150,000-200,000 bags of 100 kilograms each in Madhya Pradesh, the country's main growing state, he said.
Higher imports of edible oil also brought down prices, said another trader.
Edible oil imports during the first two months of the oil year that started November 1 have nearly doubled to 1.24 million tonnes from 624,102 tonnes a year earlier, data from the Solvent Extractors' Association showed.
India imports nearly half of its annual vegetable oil requirements of 12 million tonnes, and imports palm oil from Malaysia and Indonesia, and soyoil from Brazil and Argentina.
However, domestic palm oil prices rose, tracking the Malaysian market, traders said.
Rains in Malaysia have slowed oil palm harvesting, affecting output. Growers estimate a double-digit percentage fall in palm oil output in January and a further decline likely this month.
Prices of refined soyoil fell to 45,000 rupees (US$921.70) a tonne from last week's INR46,500/tonne.
Crude palm oil was at INR28,200/tonne, up from INR27,200/tonne, while refined, bleached and deodorized palm olein prices rose to INR33,000/tonne from INR32,100/tonne a week earlier.