Soybean and refined soybean oil futures traded lower on the National Commodities and Derivatives Exchange (NCDEX) in the first hour of trading on Wednesday morning. This was in line with the global trend that soybean oil tended to decline with record bean grinding in the United States.
January soybean futures traded at 6,218 on NCDEX in the first hour of Wednesday morning against the previous close of 6,277, down 0.94 percent; and December refined soybean oil futures traded at 1,166 yen on Wednesday morning from the previous close of 1,188 yen, down 1.88%.
Market participants said farmers and traders were selling soybeans in limited quantities and were holding their stock expecting a higher price for the product. On top of that, there has been an increase in soybean meal imports as well. As a result, soybean futures closed lower in the first two days of the week.
Even crude palm oil (CPO) futures traded lower on the Multi Commodity Exchange (MCX) on Wednesday morning. December CPO futures were trading at 1,058 in the first hour of Wednesday morning against the previous close of 1,087, down 2.70%.
Market participants are of the opinion that price trends in international markets and increased imports of certain oils are the reasons for the downward trend in edible oil prices.
December natural gas futures were trading at 289.50 on the MCX in the first hour of trading on Wednesday morning from the previous close of 284.70, up 1.69%.
December guar gum futures were trading at 10,925 on NCDEX early in the day of trading on Wednesday morning from the previous close of 10,855, up 0.64%.