Refined soyoil, mustard futures to firm up

Refined soyoil futures are expected to continue their uptrend this week on low stock in the market amid expectations of a rise in demand, analysts said.

Firm international markets are also seen aiding the rise.

Mustard futures may witness a further upside in the coming week on falling arrivals.

Refined soyoil futures on National Commodity and Derivatives Exchange are seen gaining on the back of a rise in demand ahead of the festival season, analysts said.

"During monsoon, prices usually rule higher as consumption of rises," said Rajesh Jain, vice-president and head of research and development, SMC Investment Solutions and Services.

Also, imports in June are seen down, compared with the previous month, leading to low availability in spot market, he said.

"There is shortage of crude solvent in the spot market, while demand is strong," said D S Chauhan, an Indore-based trader.

International edible oil markets are also firm and are seen gaining further on the back of good demand from China and India amid low global stock.

Jain expects the August soyoil contract on NCDEX to move in the range of Rs 495-520 per 10 kg in the coming week.

Soybean futures are also seen up in the coming week, as demand is strong and the stock is low, analysts said.

"Prices of soybean on Chicago Board of Trade are moving up on low acreage in the US. This, in turn, is having good impact on domestic prices too," said Rajesh Malviya, an Indore-based trader.

Also, arrivals in Madhya Pradesh are low due to rains in the state, traders said.

Demand for de-oiled cake is also robust, with prices rising by Rs 150-200 to Rs 11,600 per 1 tn in the last two days, said Malviya.

Soybean spot prices in Indore are expected to move up by 20-30 Rs per 100 kg in the coming week from the current rate of 1,600 rupees per 100 kg.

Also, traders will monitor the progress in sowing operations in the coming days.

August contract NCDEX may find support at Rs 1,560 and face resistance at Rs 1,650 per 100 kg during the week.

Mustard futures will track the trend in spot market in the coming week, which is likely to be firm on slack arrivals.

Average daily arrivals in Rajasthan are seen falling to 25,000-30,000 bags of 100 kg each, compared with 35,000-50,000 bags last week. "As the intensity of rain in the state increases, disruption in arrivals will see the number falling even more," said Rajesh Badaya, a Jaipur-based trader.

In Rajasthan spot market, prices are seen moving up by Rs 10-20 per 100 kg in the coming week from the current level of Rs 2,205.

However, some correction in prices is likely as they are currently at high levels, traders said.