Soybean contracts rose marginally because of short covering and overnight gains in the bellwether contracts on the CBOT. The most active June contract on the NCDEX was up 21 rupees at 3,739 rupees per 100 kg. Benchmark Indore market was close today because of Amavasya. In Akola, another key market of the oilseed, prices were up. Reports of a possible hike in the import duty on sunflower oil, mustard oil, soyoil and canola oil are also creating positive sentiments.
Canada Canola faces big carryout.
Canola contracts continue to chop around the C$525 to C$535 per tonne range during the week ended May 11, despite some recent government reports that were deemed bullish for the market. Statistics Canada released its stocks numbers which confirmed this year’s carryout would be extremely large. The agency pegged canola stockpiles, as of March 31, at 9.1 million tonnes, which greatly exceeded last year’s number of 7.9 million. To compound the situation though, is the fact that demand for exports are still lagging last year’s pace, despite a steady crush rate.
Ukraine rapeseed oil exports hit a four-year low
Rapeseed oil production is persistently ahead of last season. The first nine months of the current marketing year 2017/18 saw a 23% year-on-year rise in production. So, large and medium crushers produced 81.2 KMT of rape oil in July-March 2017/18 against 65.8 KMT in the same period last season. Rape oil production declined dramatically in the following five months of the season, to at most 1 KMT a month. Rape oil production fell to 0.229 KMT in March 2018, down 71% from February 2018 and down 84% from March 2017 (1.417 KMT). Ukrainian rape oil exports decreased to 0.2 KMT in March 2018 versus 0.5 KMT in the previous month and 1.6 KMT in March 2017. A total 60.4 KMT of the commodity was supplied to foreign markets in July-March 2017/18 that is a four-year low and almost 11% less than in the same period last year (67.8 KMT).
Jaipur mustard up on lower arrivals, improved demand
Prices of mustard rose slightly in Jaipur, Rajasthan, due to improved demand for the oilseed from domestic crushers amid lower arrivals. Arrivals of mustard seed in Rajasthan were estimated at 110,000 bags. Procurement of the mustard seed by the government, export demand of mustard meal is also seen supporting mustard seed prices.