Mumbai, June 4 (Commodities Control): On Monday, CBOT soy oil declined sharply, tracking weak crude oil futures. The sentiment was further weighed down by the USDA's announcement of a higher-than-expected soy oil stock for April.
CBOT July soyoil futures experienced a downturn, concluding at 44.14 cents per pound, marking a decrease of 1.38 cents. Similarly, CBOT July soybean futures settled 20-1/2 cents lower at $11.84-1/2 per bushel, reaching a one-month low due to the anticipation of favorable soy planting progress.
Additionally, CBOT July soymeal observed a decrease of $5.20, closing at $359.50 per short ton. Analysts, on average, anticipate the USDA's impending report to reveal planting progress at approximately 80% completion by the end of Sunday, a significant rise from the previous week's 68%. It is noteworthy that soybean condition ratings are not expected in the forthcoming report due to the emergence of only 39% of the soy crop as of the preceding week.
According to trade sources, funds were net sellers of 9,750, 3,000, and 5,500 contracts of soybean, soymeal, and soyoil futures, respectively.
ICE canola futures witnessed a decline, primarily influenced by conducive weather conditions for oilseed planting. The most active July canola plummeted by $26.60, settling at $634.40 per metric ton, while new-crop November canola experienced a similar downward trend, falling by $26.00 to $657.20.
Euronext rapeseed futures also experienced a dip, with the August 2024 contract settling at 479.25 euros per metric ton, down by 8.25 euros per metric ton.
BMD was closed on Monday.
As per USDA end-of-April bean oil stocks is at 2.311 billion pounds, above expectations but down 2.4% from March and 9% from April 2023.U.S. soy oil stocks as of April 30 is estimated at 2.229 billion pounds.
CBOT soyoil prices are expected to remain under pressure due to declining crude oil prices, which may influence soyoil demand for biofuel production. Additionally, supply from South America is expected to increase going forward. These factors could result in a sharp decline in soyoil prices in the near term.
(By Commoditiescontrol Bureau; +91-9820130172)
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