India Edible Oil: Rises; soybean extends gains on firm spot demand

Futures contracts of all components of the edible oil basket on domestic exchanges rose.

Extending gains from the previous session, the July soybean contract on National Commodity & Derivatives Exchange ended higher due to a rise in demand from crushing plants and shrinking supply in the lean season.

Losses in key contracts on Chicago Board of Trade also weighed on soybean prices on NCDEX.

Soybean contract on the US bourse fell due to improved demand at lower price level. Prices rose earlier following a lag in sowing in the US, the top grower.

Soybean futures ended with 7 to 9 1/4 cent losses. Forecasts are calling for drier weather across the Midwest this week. Soybean meal was down $2.30/ton, with soy oil 19 points lower.

USDA reported a private export sale of 145,000 MT of soybeans to Unknown for 18/19 delivery this morning. Ahead of Thursday’s Export Sales report, analysts expect soybean sales to be 200,000-500,000 MT for old crop and 100,000-300,000 MT for new crop.

Meal sales are estimated at 75,000-350,000 MT, with 5,000-25,000 MT for soy oil. Per wire surveys, US soybean stocks on June 1 are seen at 1.861 bbu, a 642 mbu jump from last year if realized.

Wednesday’s Stats Canada report showed Canola acreage intentions at 21 million acres, down 8.2% from last year due to trade friction with China and the world surplus in soybeans.