Soybean futures (May) is giving a lower closing since past two weeks & hence the short covering may face resistance near 3750 levels.
The market participants are turning more bearish in this oilseed due to hopes of higher production in 2019-20
(Jul-Jun) following forecast of "near normal" monsoon. Secondly, the decline in soybean prices on Chicago Board of Trade is
weighing on sentiments. The two countries have tentatively scheduled a fresh round of face-to-face trade talks, with negotiators
aiming to hold a signing ceremony in late May or early June. Mustard futures (May) is likely to face resistance near 3810 & the
upside may remain capped. The absence of demand for mustard meal from China & sluggish buying by NAFED is weighing on the
sentiments. Soy oil futures (May) is likely rise towards 740 levels. On the spot markets, weak availability and improved demand
lifted soy oil, with soy refined rising to Rs.750-52 for 10 kg. CPO futures (May) will remain trapped in the range of 543-551 levels.
The rising vegetable oil imports are creating a supply pressure & have forced the oilseed crushing units and edible oil refineries to
reduce their operating capacity steadily to below the sustainable level of 30%. There is less demand for the domestically produced
oils, since the imported refined oil is cheaper. The share of refined oil in the overall import in March has sequentially risen steadily
to & with profit margins narrowing for processing of CPO in domestic refineries, Indian processing units are focusing on import of
more refined oil than crude oil. On the international market, Malaysian palm oil futures shed the previous session’s gains to edge
lower as traders locked in gains and sold on technical data reflecting a bearish outlook.
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