Mumbai, 15 Jun (Commoditiescontrol): Soy Oil futures experienced significant losses, falling by 17 to 24 points . The most active July contract closed down 18 points at 43.68 cents. This decline was primarily due to the easing of concerns over potential disruptions in Argentine supply after a worker union called off a proposed strike. Additionally, a slowdown in short covering by funds contributed to the price drop.
On the CBOT, Soybeans edged lower towards the close on Friday, with contracts declining by 4 ¾ to 11 cents. However, the July contract managed a slight gain of ½ cent over the week. Meanwhile, CBOT Soymeal futures saw mixed performance, with the July contract up by 10 cents/ton, while other contracts fell between $1.40 and $3.80.
Traders are looking ahead to Monday’s NOPA crush report, anticipating 178.35 million bushels (mbu) of soybeans crushed in May among members, up from April's revised total of 169.4 mbu and slightly above last year’s 177.9 mbu. Expectations range from 171.35 to 187.6 mbu. Soybean oil stocks are projected at 1.775 billion pounds for May 31, down from 1.832 billion pounds at the end of April.
The ICE Futures canola market saw a sharp drop on Friday, driven by negative sentiment from related oils, technical selling, and lower soybean prices. The July canola contract plummeted to $605.40 per metric ton, a three-month low, down $21.20. The decline accelerated as prices broke last week's technical support. The November canola contract also fell to $624.40 per ton, down $15.50, amid position shifts and reduced open interest in the July contract.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange closed with a marginal increase of 0.25% to 3,946 ringgit ($836.55) per metric ton.
In China, Dalian's most-active soy oil contract decreased by 0.55%, while the palm oil contract fell by 0.54%.
Euronext rapeseed futures also dropped on Friday, with the most active July futures contracts falling by 0.25 euros per metric ton to 468 euros per metric ton.
For the week ending June 11, managed money traders increased their net short position in CBOT soy oil by 18,155 contracts, bringing the total to 75,844 contracts (Futures + options).
Soy oil prices are expected to come under further pressure due to increased supplies from South America and a decline in U.S. soy oil consumption for biodiesel production.
(By Commoditiescontrol Bureau; +91-9820130172)
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