DOMESTIC SCENARIO: INDIA The oilseed year 2012-13 has been good for soybean in terms of prices. Soybean prices witnessed a sharp rise during February’13 to April’13. The gain was almost 30 percent spread over three months primarily on strong Indian meal book. Iran and South Korea have turned out to be the leading soy meal importers from India. Lately, rising soybean prices made India origin out priced in the world meal market and demand shifted hands from India to South America. As a result of which; meal exports from India slumped and further tapered the demand for soybean consequently cooling of the soaring prices. What is worthy to note is the slow pace of farmer selling over the year. The spot markets in India never faced an aggressive selling pressure which was the prima facie support factor which led to a spiraling rise in soybean prices when meal demand gained momentum at the start of 2013. Going forth, more than sufficient domestic supply and supply fears wading from the international market will dent the moves of the bulls. Among the vegetable oils, soy oil prices saw a feeble recovery from the slump witnessed in August’12- September’12. During 2012-13, Indian home currency depreciated almost 20 percent. Rupee which was quoting at 51 against the US dollar now trades at 61. This has lent support to oil prices as majority of the Indian oil consumption is met via imports. Due to the large disparity between the domestic and imported oil, the rupee depreciation didn’t lead to a big upside in the domestic soy oil prices. Palm oil on the other hand has witnessed a recovery in prices as gradual improvement in demand coupled with lower production phase led to a drawdown of the record stocks in Malaysia.
Posted on: Mon, 15 Jul 2013 09:37:12 +0000
Trending Topics
Recently Viewed Topics
© 2015