Refined Soya Oil

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Contract Specifications
Commodity Name Refined Soya Oil
Basis for price quote Ex-storage tank Indore, inclusive of all taxes
Trading unit  10 MT
Delivery unit 10 MT and multiples thereof.
Quotation / Base value  Rs per 10 KG
Tick size (minimum price movement) Rs 0.05 (i.e. 5 Paisa) per 10 KG
Delivery Logic Both Option
Delivery Center Basis : Indore (within a radius of 100 km from the corporation/municipal limits).

Contract Specification January 2014 onwards

Soybean oil is a vegetable oil extracted from the seeds of the soybean (Glycine max). It is one of the most widely consumed cooking oils. As a drying oil, processed soybean oil is also used as a base for printing inks (soy ink) and oil paints. Like all vegetable oils, soyoil is cholesterol-free. It is also low in saturated fat.
Crop Cycle
In India, crushing of soybean for soy oil and meal starts from October and it peaks during the subsequent two-three months.
Production & Demand
Soya bean oil is derived from Soy bean after crushing. India is the 6th largest producer of Soy bean oil. India production increases to 1265 thousand MT in 2009-10 from 1157 thousand MT in 2006-07 whereas it also reached up to  1499 thousand MT in 2007-08. On the Demand side India is world 5th largest domestic consumer after china, US, Brazil and EU-27. .  But due to huge domestic demand of vegetable oil, the country is heavily dependent upon import to fulfill its local demand and make India one of the largest importers of soya bean oil in world followed by china, EU-27 and Algeria. India imports 1598 thousand MT, more than its domestic production.
Refined soybean oil, before or after hydrogenation, is used in numerous edible products spreads, butter, margarine, frying and salad oils, mayonnaise, and as essential components of most baked goods. Soya oil was also consumed for paints, linoleum, oil cloth, printing, inks, soaps, insecticides, disinfectants.
World Scenario
Soy bean oil is the world largest traded vegetable oil in International market after Palm Oil. United States is the largest producer; producing 8.8 million Mt followed China 8.7 million MT, Argentina 6.47 million MT and Brazil 6.46 million MT in 2009-10. EU-27, India and Mexico are the other largest producer of Soy bean oil in world. For year 2009-10 total soy bean oil production was around 38.76 million MT.
China is the largest domestic consumer and India is the biggest importer of soybean oil in 2009-10. China consumes 10.4 million MT followed by United States of 7.9 million MT and Brazil of 4.9 million MT, whereas Argentina is the largest exporter followed by Brazil and United States.
The most recent federal government statistics show biodiesel represents 14 percent of annual soybean oil demand and remains the predominant raw material used for biodiesel production. Soybean becomes the standard for bio-diesel production and benchmark against which to evaluate other oil producing crops but in the current scenario, soybean oil is too expensive for regular conversion to bio-diesel.
Market Influencing Factors
  • Weather at all the producing centers, domestic and international.
  • International price movement, the futures market at CBOT being the major international reference market.
  • Pests and diseases.
  • The supply-demand and price scenario of competitive oils, viz., palmoil.
  • Demand for soymeal from the feed sector and the entire fundamentals of this sector.
  • The crush margin between meal, oil and seed.

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