Downtrend intensify in Oilseeds and Edible Oils Markets in India

Today is the first trading day of the current week starting 9 March and Indian oilseeds and edible oil (Soy oil and Crude Palm Oil) trades down both in physical as well as futures market.

On last friday on 6 March in my previous post, I predicted that edible oil market in India may witness steep fall in near future.

Today market has given early signs of it. Soy oil and Palm oil tried to go up but due to lack of physical market support, the market has started coming down.

In the physical market, the soy oil price are down by Rs. 5.60/10 kg in the Indore market which is the benchmark market for soy oil and soybean.

In Indian futures Market, the soybean, mustard seed, cpo and soy oil all are down in the range of .20 to .88% from previous close.

Discouraging oilmeal export data, poor domestic edible oil demand, weak international market sentiments do not allow Indian market to move up.

It seems that more weakness will be seen in near future.

More update will be given in the night near market close. (IST)

Indian Oilmeal Exports Drop Sharply by 43%

For the consecutive third month the oilmeals exports by India has fallen sharply due to slack demand by the Importers.

As per the Press Release by the Solvent Extractors’ Association of India, dated 5 Feb 2015: 

• The Oilmeal export during April.’14 to Feb.,15 is reported at 2,229,993 tons compared to 3,933,664 tons i.e. down by 43%.  [Table 1]

• In Feb., 2015, export of oilmeals is reported at 181,996 tons compared to 307,260 tons in Feb., 2014 i.e. down by 41%.

• Export of soybean meal has greatly reduced in last 11 months. The Association cites the main reason of this drop is the disparity for soybean meal in international market.

• However, the share of rapeseed meal has increased from 820,885 to 1,002,491 tons, while that of ricebran extractions export is more than doubled in last 11 months.

The Press release further mentions that there has been sharp drop in the Average FOB prices of Oilmeals.

The average FOB soybean meal price sharply dropped from US $ 560 in Sept’14 to US$458 in Feb’15.

The Major Importers of Indian Oilmeals are South Korea, Iran and Thailand.