By | Arvind Jadhav | Business News
Mumbai: According to Uday Thakkar of the Confederation of All India Traders (CAIT), the global soy oil market has witnessed a decline in FOB prices of Argentina and Brazil due to a fall in CBOT futures and weak basis. On July 30, CBOT September soy oil futures closed at 56.13 cents per pound, down 0.40 cents. This decline resulted in Argentina’s September basis falling to -620 / -700 points, with a decrease of $9 to $1,110 per tonne in FOB seller price, and Brazil’s FOB offer falling by $5 to $1,147 per tonne.
The decline in soy oil prices has been accompanied by a stable sunflower oil market, with FOB offers from Argentina at $1,180 / $1,130 for August and $1,120 / $1,080 for November. The narrowing gap between sunflower oil and soy oil prices could attract major buyers like India and MENA. Meanwhile, the soya meal market was under pressure, with Argentina’s meal containing 46.5% protein decreasing to $86.38 per tonne for August/September delivery.
Traders are advised to keep a close eye on Argentina’s policy changes, FOB prices, and demand from major buyer countries to determine the future direction of prices. Key market indicators, such as the share of Soya Oil in Crush Value, which remained constant at 50.69%, and BOPO spreads, recorded at $70 for August and $30 for December, will also be crucial in shaping market trends.
