November 28, 2005

India's soyoil prices higher on strong demand

India's crude soyoil prices rose to Rs 35,200/tonne from Rs 34,800/tonne last week as there was a drop in supply while demand remained strong.

Daily arrivals of new crop soybean--which began a month ago--have peaked and there are fewer arrivals, traders said.

"Farmers have already sold a large part of their crop. Now, some of them are holding on their stocks to cash in on any sudden sharp price rise in the near term," said a trader in New Delhi.

Demand, meanwhile, has been picking up, as traders traditionally stock up on edible oils in the last eight to 10 days of each month.

In the next few weeks, prices may be range bound. While arrivals may drop even more, a lack of keen buying interest after traders finish stocking up edible oils is likely to prevent any significant price gains.

India's current soybean crops were harvested in September and October.