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Indian futures trading in farm commodities is being curbed, which is hurting trade firms' ability to hedge. Edible oil traders say they are scaling back purchases and holding stock for only about 10 days.
Analysts expect higher price volatility.
Reduced hedging and forward buying by Indian processors and traders lowers import demand for vegetable oils and grains. Greater volatility could make domestic and import prices harder to predict.
thewire.inRajendra Jadhav 22/Dec/2021Dec 22, 2021After 196 past neutral policy events, SBO moved a median +0.1% over 5 sessions (52% higher; middle half -1.6% to +2.0%), and -0.5% over 20.
After 513 past neutral policy events, PALMOIL moved a median 0.0% over 5 sessions (50% higher; middle half -1.6% to +1.4%), and -0.1% over 20.
After 554 past neutral policy events, SOY moved a median +0.0% over 5 sessions (51% higher; middle half -1.4% to +1.6%), and +0.6% over 20.
After 137 past neutral policy events, WHEAT moved a median -0.4% over 5 sessions (43% higher; middle half -1.9% to +1.2%), and +0.3% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
