NEW DELHI – Futures contracts of all edible oils and oilseeds on domestic exchanges fell today tracking weakness in overseas markets, and due to a stronger rupee against the dollar, analysts said.
The front-month November crude palm oil contract on Multi Commodity Exchange of India today hit 547.9 rupees per 10 kg, the lowest this year, due to bearish cues from parent contracts on the Bursa Malaysia Derivatives, analysts said.
A stronger rupee also weighed on prices on the domestic exchange, analysts said. A stronger rupee makes dollar-denominated imported goods cheaper for domestic buyers.
On the Malaysian bourse, crude palm oil futures fell today due to anticipation that an increase in production amid declining exports would lead to swelling inventories, analysts said.
The benchmark January contract on the bourse today hit an over three-year low of 2,039 ringgits (35,389.51 rupees), before closing at 2,040 ringgits. The front-month December CPO contract slipped below 2,000 ringgits per tn for the first time since September 2015.
The Malaysia Palm Oil Board will release production data for October early next week.
Malaysia’s palm oil production for September rose to 1.9 mln tn, up 14.4% from August, as per data published by the Malaysia Palm Oil Board last month. Inventories of palm oil in the country rose 1.5% on month to 2.5 mln tn in September, the report said.
Soybean and soyoil futures on National Commodity and Derivatives Exchange also fell today due to lackluster trade in physical markets, as markets were shut on account of Diwali.
The decline in prices can also be attributed to weakness in crude palm oil  contracts and weakness in the bellwether soyoil contracts on Chicago Board of Trade, analysts said.
Price of both the oils largely move in tandem, as they are substitutes for each other.
The front-month soyoil contract hit an one-month low of 748.00 rupees per 10 kg, before marginally recovering to 748.50 rupees, while the most-active December contract was down 0.7% at 742.80 rupees.
Futures contracts of soybean on NCDEX fell today due to bearish cues from CBOT in absence of cues from domestic spot markets, analysts said.

Soybean futures on CBOT fell following USDA’s latest report that projected higher ending stocks for the oilseed in 2018-19, analysts said.
The USDA, in its latest update, pegged global soybean ending stocks for 2018-19 at 112.08 mln tn, up 2.04 mln tn from the previous estimate. On CBOT, the November soybean contract fell 0.5%.
The most-active December contract on the domestic bourse ended 1.2% lower at 3,379 rupees per 100 kg.
A stronger rupee also weighed on prices on the domestic exchange, analysts said.
Mustard seed futures on NCDEX ended lower due to lack of cues from spot markets and lower demand from millers, analysts said. The front-month November contract of mustard seed hit a three-week low of 4,044 rupees per 100 kg, before marginally recovering to 4,045 rupees.
“Demand is low from millers as they had made huge purchases ahead of Diwali and the markets were also closed today due to Diwali,” said a Jaipur-based oilseed trader.
The most-active December contract on NCDEX ended 1.5% lower at 4,125 rupees per 100 kg.