Dry - Unfavourable weather and concerns about ongoing Kharif crop sowing in main producing states Madhya Pradesh, Gujarat and Maharashtra boost edible oil prices on Monday. Rainfall in India has been 24 percent below average so far this season. The physical market has also been taken support from dry weather in the U.S., which pushed up Chicago and Malaysian futures markets higher. In Mumbai imported Palmolein rose by Rs.8. Soya refined oil, Sunflower oil and cotton refined oil increase by Rs.15 each for 10 kgs. Groundnut and rapeseed oil were steady. Malaysian BMD crude Palm oil closed higher by 77, 74, 77 ringgits a tone on weather concerns and higher demand.
Analyst said, Malaysian BMD CPO futures closed higher, tracking gains for Chicago soya oil and could rise further as the premium of soya oil over palm oil has gone up to $180/ton and this will encourage price conscious buyers to shift demand to cheaper palm oil. The Indian rupee fell to near a record low. A weak rupee makes edible oil imports expensive forcing domestic refiners to raise the rate. Rising demand for palm oil ahead of the fasting month Ramadan starts in end-July also added to the bullish mood in the market. The dry weather is lending support. Demand should also be stay healthy because of Festivals he said.
Mumbai based wholesale broker said Volume was thin and need based in physical markets as stockiest keep away at higher price level. Late - slower sowing due to delay in monsoon will push up bullish sentiment further. Supportive factor for world edible oil sector is the dry weather in USA and India. He said about 400-500 of palmolein was traded in the market. One importer has sold about 300- 400 tonnes palmolein at Rs.612-613 for 1-10 July. Another 80 – 100 tone was resale traded at Rs.612 on CAD basis ex JNPT. There was no demand - trade in other oils.
At the end Liberty was quoting Palmolein at Rs.617-619, Super palmolein Rs.653, Soya oil Rs.740 and Sunflower refined oil Rs.745. Ruchi quoted palmolein at Rs 618 for July and Rs.623 -625 for August. Soya refined oil at Rs 735 - Rs.740 for July. Sunflower refined oil at Rs 745-750. Allana’s rate for Palmolein was Rs.615 for 20-30 July. In Saurashtra - Rajkot market groundnut oil extended loss further by Rs.10 to 1800 (Rs 1,810) for Telia tin and drop by Rs.10 to Rs 1,170 (Rs 1,180) for loose - 10kgs.
Malaysia's crude palm oil July contracts settled at MYR 3,003 (MYR 2,926), August at MYR 3,018
(MRY 2,944) and September at MYR 3,030 (MYR 2,953) a tone. On National Board of Trade – Indore,
Soya refined oil July-12 futures was ruling higher at Rs.765.50 (Rs.756.50).
The Bombay Commodity Exchange spot rates were (Rs/10 kg): groundnut oil 1,185 (1,185),
soya refined oil 735 (720), sunflower exp. ref. 675 (660), sunflower ref. 740 (725), rapeseed ref. oil
815 (815), rapeseed expeller ref. 785 (785) cotton ref. oil 705 (690) and palmolein 615 (607)