Spot prices of refined soy oil declined across physical markets amidst weak demand and improved influx from stockists in anticipation for cheaper availability imported oils (palm oil and sunflower oil) into country in the days to come following Government’s recent decision to reduce import duty. Market ignored strengthening BMD. Weakness at CBOT aided bearishness. Hyderabad witnessed range bound prices on balance demand/supply while in Rajkot, less interest for soy oil as compared to other edible oils like groundnut and cotton oil resulted in unchanged prices. Crude soy oil CIF prices declined significantly and quoted at $693/tonne to previous $702/tonne for February shipment on Thursday.

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Overnight weakness at CBOT had some impact on soybeans prices across domestic markets despite firm palm prices on the BMD. Reduction in imported oil duty cast its shadow on soybean prices. Since import duties have only been reduced for the palm oil and sunflower oil complex, soy oil prices will have to edge lower to remain competitive with palm and sunflower oils. Any weakness in oil prices will naturally have a sobering effect on soybean prices Overall arrivals declined by 30-40,000 bags on account of stockists holding back at lower levels. Solvent extractors reduce their offtake amidst low parity for soy oil.

Nafed once again revised lower mustard seed selling prices. The new rates for Kota regions were 1670/qtl against previous prices of Rs. 1695/qtl [for seeds stocked during 2005-06]. Overall arrivals declined significantly by 1,500-2,000 bags with regular offtake from millers. Mustard oil prices continues to trade on weaker side and on Thursday touched its lowest level in Kota in last two months adding to bearish impact. Traders are expecting the rise in temperatures is likely to affect the oil content of new crop mustard seeds. The NCDEX February contract closed at Rs 368/20 Kg, Rs 0.2 higher than previous closing levels.