Imported Palmolein and soya refined oil decline by Rs 2 and Rs 4 respectively on Tuesday on lack of demand and higher resale selling pressure at the domestic level.
Sunflower refined oil dropped Rs 5 while groundnut oil was down by Rs 10 on bearish reports from producing centres. Rapeseed oil and cotton refined oil increased by Rs 5 each. In the absence of fresh demand, volumes were thin and isolated, keeping the sentiment steady, said sources.
Local prices were under pressure despite a continuous rise in Malaysian Palm oil futures, which closed higher by 44, 36 and 36 ringgits a tonne.
Chicago soyabeans surged to their highest in almost four years as a US report cut crop condition ratings in a fresh blow to world soyabean oil supplies. According to traders, due to deficient and delayed rain sowing of main oilseeds in Gujarat, Madhya Pradesh, Maharashtra, Rajasthan is either lower or delayed. Farmers are ready with prepared fields but erratic monsoon are delaying sowing, which will lead to shortage in lean season period.
Analyst say palm oil is up, in line with the higher external markets, thanks to the European summit. Extreme hot and dry weather has taken a toll on the US soyabean crops with the USDA on Monday reducing its condition rating for the soyabean crop to 45 per cent (good-to-excellent), compared with 53 per cent a week ago.
The USDA’s crop condition rating for soyabean is lowest since 1988. The market is just rising higher. Ramadan is coming closer. Traders are also positioning ahead of the Malaysian Palm Oil Board data next week on stocks and output.
Sources said volumes remain thin and isolated on need-based demand. About 80-100 tonnes of Palmolein was resale-traded at Rs 612-613. End-of-the-day Liberty was quoting Palmolein at Rs 617-619, Super palmolein Rs 653, Soya oil Rs 747 and Sunflower refined oil at Rs 750.
Ruchi quoted palmolein at Rs 616 for July and Rs 621-623 for August. Soya refined oil at Rs 740-745 for July. Sunflower refined oil at Rs 740-745. Allana’s rate for Palmolein was Rs 620 and Mewah offered at Rs.618. Vaibhavi’s rate was Rs 615.
In Saurashtra (Rajkot) groundnut oil dropped by Rs 10 to Rs 1,900 (Rs 1,910) for Telia tin, and Rs 1,240 (Rs 1,250) for “loose” 10kg.
Malaysia's crude palm oil August contracts settled at MYR 3,114 (MYR 3,070), September at MYR 3,124 (MRY 3,088), and October at MYR 3,129 (MYR 3,094) a tonne. On the National Board of Trade – Indore, Soya refined oil July-12 futures decline to Rs 755.00 (Rs 760.00) and August at Rs 768.00 (Rs.771.00).
The Bombay Commodity Exchange spot rates were (Rs/10 kg): Groundnut oil 1,190 (1,200), soya refined oil 735 (739), sunflower exp. ref. 670 (670), sunflower ref. 745 (750), rapeseed ref. oil 830 (825), rapeseed expeller ref. 800 (795) cotton ref. oil 705 (700) and palmolein 614 (616).