Crude Oil Dropped As Traders Weighed

Soybean edged lower due to technical corrections and weak spot demand. However, prices have been in positive trend due to expectation of higher Minimum Support Price and lag in soybean sowing in the country. The area under soybean in the country was at 8.59 lakh ha as of last week, down 44.1% from a year ago, according to data released by the farm ministry. Area under soybean in MP is down by 64% while in acreage is down in Maharashtra by 49% and Rajasthan 28%. In Madhya Pradesh

Mustard oil mills across the country crushed 650,000 tn of the oilseed in June, down 27% from previous month as per data release by Mustard Oil Producers Association of India. According to SEA latest export report, mustard meal exports during first 5 months of 2018 is higher by 164% on year due to higher demand from South Korea. Exports are 209% higher at 6.64 lt for the FY 2017/18 compared to previous year’s export volume of 2.14 lt.

For the first fortnight of July, the base import price of crude soyoil has been cut to $750 per tn from $752 per tn by the govt. As per SEA monthly report, as on June 1, country’ edible oil stock (in ports and pipeline) is at highest level ever at 26.6 lt putting pressure on domestic prices of edible oils.

Crude oil dropped as traders weighed the prospect of fresh supply flooding the market against an ongoing disruption in crude output.OPEC saw June output at 32.32 million bpd, a survey showed, up 320,000 bpd from May.The UAE’s Abu Dhabi National Oil Co, said it is able to increase production by several hundred thousand bpd if needed.

Natural gas prices gained as warmer than normal weather is expected to cover most of the United States for the next 8-14 days increasing cooling demand.Production in the lower 48 U.S. states has averaged a record-high 79.9 billion cubic feet per day (bcfd) for the past 30 days.Meteorologists forecast temperatures, which have been higher than normal since the start of June, will remain at above-normal levels through at least mid-July.Net injections into storage totaled 66 Bcf for the week ending June 22, compared with the five-year average net injection of 72 Bcf.

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