Soy oil prices expected to further slip in Indian Market

As predicted during past week on 21 January 2015 in this blog, the Indian soy oil futures prices fell to the level near 615 from 637 on poor demand and weak international market cues.

The situation has yet not improved. Some more correction is expected on first few days of this week. The market may further correct to the level near 605.

• The import of edible oil in India has seen increment during past two months as the Indian traders anticipated well in advance that import duty on the edible oils may be increased.
•  The major exporters of palm oil i.e. Indonesia and Malaysia successfully exported palm oil to Indian to reduce their burgeoning stocks.
• Drastic price fall in the crude oil also reduced the demand of CPO in to bio diesel.
• The pace of domestic oilseed crush was remain low due to slack export demand of oil meal.
• As per the data released by the Solvent Extractors’ Association of India, the import of Vegetable oils (edible & non-edible) for the month of November, 2014 is reported at 1,189,934 tons compared to 944,309 tons in November, 2013, consisting of 1,149,131 tons of edible oils and 40,803 tons of non-edible oils i.e. up by 26%.
• Please note that the edible oil stock position on the Port is also comfortable.
• The SEA of India data shows that the current stock of edible oils as on 1^st Dec., 2014 at various ports is estimated at 860,000 tons (CPO 555,000 tons, RBD Palmolein 80,000 tons, Degummed Soybean Oil 60,000 tons, Crude Sunflower Oil 130,000 tons and 35,000 tons of Rapeseed (Canola) Oil and about 1,100,000 tons in pipelines.
• Total stock, both at ports and in pipelines increased to 1,960,000 tons from 1,860,000 tons in Nov.’14 and 1,470,000 tons in Dec.’13.

 

Source: seaofindia.com

All these factors have significantly contributed to the current price fall in the edible oil prices in India which may continue for next couple of days during this week.