Refined soy oil market witnessed weak sentiments across the board on the concerns of duty cut by government. Later during the evening government effected a cut in duty of Palm oils and Sunflower oil by 10 percent in order to combat rising inflation in the country. However some section of the trade opine that the overseas prices (CIF) will sharply move up to offset any gains that may accrue on downward adjustment of duty. BMD futures also witnessed weak sentiments as recent data showed decreasing exports from the country. CIF crude soy oil prices increased further to $702 against previous $695/tonne for February shipment on Tuesday. The sentiments in refined soy oil market are likely to remain subdued until the final decision on the issue of duty cut is taken.

Soybean arrivals increased significantly in Indore as the stockists offloaded their stocks. With reduction of duty on imported veg-oils, stockists seemed under pressure to offload their stocks. Arrivals stood steady in Maharashtra and Rajasthan market and it is reported at 70,000 and 20,000 respectively. The prices are likely to see further hammering in the coming days as the Government has reduced duty on CPO to 60% from earlier 70% levels. Reduced duty would result in cheaper imports and thus domestic oil prices are likely to see some softness. The seed prices might also follow the cue. The NCDEX February contract settled at Rs. 1424.90/qtl, Rs.6.42 below the previous close.

Mustard prices remained steady to weak in most of the major trading centers, as NAFED revised downwards seed prices further. NAFED has reduced the mustard seed rates by Rs. 5 per qtl in most of the centers; however, some centers saw a reduction of Rs. 10 too. As per trade sources millers have piled up sufficient stocks keeping in mind lower crop outlook. The cut in import duties on palm oil complex and sunflower oil by the government is likely to have a slightly bearish impact on all domestic oilseed and edible oil prices. Mustard seed prices are also likely to see a fall in prices in sympathy with the rest of the oil complex. The NCDEX February contract settled at Rs. 368.20/20Kg, Rs.5.15 lower than the previous closing level.