Edible oils firm on strong global markets

India refined soyoil futures are seen mostly firm next week tracking strong overseas markets and good demand in spot, analysts said.

Adverse weather conditions like El Nino has led to anticipation of supply disruption of palm oil in Indonesia and Malaysia, leading to bullish sentiment in the oilseed complex. International demand is also seen robust.

Mustard seed futures are also seen higher on firm demand amid low arrivals in spot markets.

Soyoil futures will be mostly on the higher side tracking strong global edible oil prices, analysts said.

"On, Chicago Board of Trade and Bursa Malaysia, edible oil prices have been rallying in the past few days. Malaysian palm oil prices have even breached the 2,000 ringgits per 100 kg level. This is likely to support rates in India," said Harish Gallipeli, research head, Karvy Comtrade.

Also, China's soyoil imports in the present calendar year (Jan-Dec) are seen higher due to low production in the country. Domestic demand is also likely to improve in April, as the marriage season starts, said an Indore-based trader.

May soyoil on National Commodity and Derivatives Exchange will find support at Rs 465 per 10 kg and resistance at Rs 480. On Thursday, the contract closed at Rs 470.20 per 10 kg, down Rs 1.05 from previous close. In spot markets, refined soyoil is likely to trade in the range of Rs 439-Rs452 per 10 kg.

Soybean spot and futures are seen remaining firm in the coming week as demand continues to be good and arrivals decline. Also, traders are holding on to stocks expecting a further rise in prices, said an Indore-based trader. "Arrivals in the spot markets are low and it would continue to remain that way as the soybean season has come to an end. Firmness in meal would provide support to beans," said a Kotak Commodity Services report.

However, during the first half of next week, some profit booking at higher levels and hence cap sharp rise in prices, analysts said.

"I feel NCDEX May soybean would find support at Rs 1,590-Rs1,592 per 100 kg and resistance at Rs 1,620," Gallipeli said. On Thursday, May contract closed at Rs 1,599.00 per 100 kg, up Rs 2.35 from previous close.

In spot markets, soybean plant delivery rates in Indore are expected to move upwards to Rs 1,700 in the next 15 days, said Vishal Nath, a trader with Indore-based Vinayak Canvassers.

Mustard seed futures are likely to move northwards with intermittent corrections due to profit booking during next week.

May mustard seed on NCDEX is seen testing a resistance of Rs 425 per 20 kg and support of Rs 411-413 next week, analysts said.

"Prices are seen moving higher as stockist are actively buying and arrivals are also lower than expected," said Paras Jain of Jaipur-based Priya Trading Agency.

Today, arrivals in spot markets of Rajasthan were 150,000-180,000 bags (1 bag=100 kg) compared to the expected 300,000-350,000 bags.

In spot markets of Jaipur, mustard seed prices are expected to move between Rs 1,900 per 100 kg and Rs 2,100, traders said.