Barring Rapeseed oil which increased by Rs.5 most edible oils decline on Wednesday, tracking extended decline in Malaysian Palm oil futures. Imported palmolein and soya oil drop by Rs.7 and Rs.2 each. Groundnut oil and sunflower refined oil eased by Rs.5 each while cotton refined oil lose by Rs.2 on arrivals of monsoon in key oilseed producing centers giving a boost to sowing. Local refineries have reduced their rates in line with weak foreign markets. Local demand was routine with thin volume on bearish sentiment overseas.

Malaysian Crude Palm oil futures closed lower by 50, 48 and 49 ringgits a tone. Market fall to their lowest level this month tracking weaker Dalian oilseed and CBOT soyaoil futures amid worries about a slowdown in China's economy. The declines in the palm oil prices went against higher agriculture markets that were lifted by US drought hurting soyabean crops, a view likely to be reflected in a key US report late evening that may boost the prices Analyst said.

Mr. Shailesh Kataria of Riddhi Broker told Businessline “Tracking bearish Malaysian Palm oil futures prices on eased exports data and arrivals of monsoon in Maharashtra, Gujarat, Madhya Pradesh and Rajasthan has increase selling pressure in physical market. Need based local demand forced local refineries to reduce the rates to keep fit with market mood. About 250 – 300 tones of Palmolein was resale traded for ready, July and August delivery in the range of Rs.614 – Rs.617. Vaibhavi sold about 150- 200 tones palmolein at Rs.613 – 614. Traders are expecting higher demand during festival months August – December.

End of the day Liberty was quoting Palmolein at Rs.625-628, Super palmolein Rs.660, Soya oil Rs.760 and Sunflower refined oil Rs.753. Ruchi quoted palmolein at Rs 615 for Ready delivery, Rs.618 for July and Rs.623-625 for August. Soya refined oil at Rs 755 for July and Rs.760 for August. Sunflower refined oil at Rs 748-753 for July – August respectively. Allana’s rate for Palmolein was Rs.625 for 1- 10 August. Mewah’s rate was Rs.624. Vaibhavi’s rate for Palmolein was Rs.615. In Saurashtra - Rajkot groundnut oil price was Rs.1840 (Rs 1,830) for Telia tin and Rs 1,200 (Rs 1,200) for loose - 10kgs.

Malaysia's crude palm oil August contracts settled lower at MYR 3,069 (MYR 3,126), September at MYR 3,082 (MRY 3,130) and October at MYR 3,087 (MYR 3,136) a tone. On National Board of Trade – Indore, Soya refined oil July-12 futures decline to Rs.776.00 (Rs.780.00) and August at Rs.790.80 (Rs.792.20).

The Bombay Commodity Exchange spot rates were (Rs/10 kg): groundnut oil 1,180 (1,185), soya refined oil 750 (752), sunflower exp. ref. 700 (685), sunflower ref. 750 (755), rapeseed ref. oil 865 (860), rapeseed expeller ref. 835 (830) cotton ref. oil 720 (722) and palmolein 615 (622).

(This article was published on July 11, 2012)
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