Edible oil continue to fall on Commodity Exchanges: Angel Broking

Views of Mr. Ritesh Kumar Sahu (Fundamental Analyst - Agri Commodities, Angel Broking):

"Edible oil futures - ref Soyoil and Crude palm Oil (CPO) continue to tumble for the eight consecutive session today weak physical demand, lowering of base import price and higher production estimates of oilseeds in the country.

The CPO on MCX fell by 7.35% in last one month while Refine Soy oil fell by 9.74% on NCDEX.

Production of total oilseeds in the country is expected to increase by whooping 33% to 33.1 million tonnes (mt) on good soil moisture following near normal monsoon rains. Meanwhile, the production of edible oil in 2016/17 is estimated at 72.8 lakh tonnes, up 25.5% compared to last year production of 58 lt.

According to data released by the Solvent Extractors'' Association of India (SEA) recently, country''s edible oil imports fell 19.7% on year to 10.1 lakh tonnes in January.

Moreover, the base import prices of Crude soy oil and RBD palmolein cut by $32 per tonne and $39 per tonne for the second half of February. Base import prices of edible oils are revised every fortnight by Central Board of Excise and Customs, based on their movement in the international market and changes in the foreign exchange rate.

As India is net importer of edible oil, the domestic prices trace international prices of CPO on Bursa Malaysia and soy oil priced on Chicago Board Of trade (CBOT)."

Source : Equity Bulls

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