DJ India Edible Oil Prices Mixed; Higher Output Hopes Offset Firm Demand 29.08.2011
MUMBAI (Dow Jones)--Indian edible oil prices were mixed in the week to Aug. 26 as expectations of higher soybean production offset firm demand ahead of the peak festive season.
The price of refined soyoil rose to INR63,800 per metric ton from INR63,400. The price of crude palm oil fell to INR48,700 per ton from INR49,400 last week, while that of refined, bleached and deodorized palm olein declined marginally to INR55,400 per ton from INR55,500.
The festive demand is likely to pick up further from next week, said a Mumbai-based trader.
The festival season starts in September this year and will be at its peak during Diwali, to be celebrated on Oct. 26 this year.
However, expectations of higher soybean output in the next crop year due to rising acreage will restrict any sharp rise in prices, said the trader.
The country's soybean output may rise by 1.0 million tons in the next marketing year starting Oct. 1, according to industry executives. India produced about 12.66 million tons of soybean in 2010-11, according to government estimates.
The area under soybean has risen to 10.23 million hectares this year, junior Farm Minister Harish Rawat said earlier this week. The total area under oilseed was at 9.55 million hectares in 2010-11.
Soybean, India's biggest oilseed crop, accounts for more than 60% of the total summer-sown oilseed production