The edible oils market witnessed a mixed trend on Tuesday due to need-based demand and thin volumes. Imported palmolein increased by Re 1, cotton refined oil up by Rs 3, groundnut oil edged by Rs 10 and rapeseed oil improved by Rs 7 for 10 kg. Soyabean refined oil dropped by Rs 3, tracking bearish sentiment at producing centres.

Market players were awaiting an official notification on revised tariff value on RBD palmolein. Monsoon rains in Maharashtra, Madhya Pradesh and some part of Gujarat have eased concerns over crops to some extent. Malaysian BMD crude palm oil futures closed lower by 25, 29 and 25 ringgits a tonne. Favourable weather for soyabean crop could lead to a higher supply of soyabean oil and draw the demand away from palm oil.

An analyst said the market is looking out for palm oil export data for July for consumption trends after earlier data showed signs of slowing demand. But slowing exports coupled with expectations of better production in Malaysia this month could boost palm oil stock levels and ease some pressure off tightening global oilseed supplies. A tighter supply outlook on persistent drought in the US Midwest has pushed soyabean oil prices to new high, fuelling worries of food inflation in top edible oil buyers India and China.

Market sources said need-based local demand at July-end kept volumes thin and isolated. Nearly 250-300 tonnes of palmolein and soyabean refined were traded during the day. Ruchi sold about 100 tonnes of soyabean oil at Rs 743 for August while resellers offloaded 150-200 tonnes of palmolein at Rs 613-615. Traders kept away from fresh bulk buying.

Monsoon rains in Gujarat, Maharashtra and Madhya Pradesh curbed bullish sentiment in indigenous oils.

End of the day Liberty was quoting palmolein at Rs 624-625 for August and Rs 627-628 for September; Super Palmolein at Rs 674, soya oil at Rs 752 and sunflower refined oil at Rs 772. Ruchi quoted palmolein for August at Rs 620 and Rs 623 for September delivery; Soya refined oil for August at Rs 743 and Rs 747 for September. Sunflower refined oil was quoted at Rs 757 for August and Rs 762 for September delivery. Allana’s rate for palmolein was Rs 622 for 1-15 September. Vaibhavi quoted palmolein for August Rs 620 and Rs 622 for September.

In Saurashtra, sentiment was weak due to on cloudy weather. In Rajkot Groundnut oil was steady at Rs 1,920 (Rs 1,920) for Telia tin and Rs 1,260 (Rs 1,260) for loose – 10kg. On the National Board of Trade, Indore, soya refined oil August-12 futures was up Rs 783.00 (Rs 778.50) while September -12 was at up Rs 784.80 (Rs 782.00).

Malaysia's crude palm oil August contracts settled higher at MYR 2,955 (MYR 2,980), September at MYR 2,965 (MRY 2,994) and October at MYR 2,980 (MYR 3,005) a tonne.

The Bombay Commodity Exchange spot rates were (Rs/10 kg): Groundnut oil 1,220 (1,210), soya refined oil 742 (745), sunflower exp. ref. 700 (700), sunflower ref. 760 (760), rapeseed ref. oil 897 (890), rapeseed expeller ref. 867 (860) cotton ref. oil 755 (752) and palmolein 615 (614).

(This article was published on July 31, 2012)
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