Imported palmolein extended losses by Rs 2 while soya and other edible oils remained steady on Friday. Palmolein in resale crossed Rs 600 mark and touched its low level since June 19. A Mumbai-based broker said tracking thin volatility with bearish sentiment in Malaysian crude palm oil futures and thin presence of players in the market due to local holiday activities were isolated. In the beginning, under improved resale selling pressure needy buyers covered merely 40-50 tonnes of palmolein at Rs 598 for ready delivery. Domestic refineries have reduced rates but the response was very poor as stockists have covered good quantity the previous day. Ruchi sold 150-200 tonnes of palmolien at Rs 601 for August. In Gujarat – Saurashtra yards will remain closed till week end due to Janmashthami.

Analysts said Malaysian palm oil stocks hit a five-month high of nearly 20 lakh tonnes, almost in line with market expectations, industry regulator Malaysian Palm Oil Board said. And the build up could continue well into August as cargo surveyor data showed Malaysian palm exports for the first ten days of this month fell 1.8 per cent from a month ago. Exports of the edible oil remain sluggish with cargo surveyor Intertek Testing Services reported Aug 1-10 exports at 3.57 lakh tonnes, compared to 3.64 lakh tonnes a month ago.

Liberty was quoting palmolein at Rs 605-606, super palmolein Rs 647-649, soya oil Rs 738 and sunflower refined oil Rs 765. Ruchi quoted palmolein at Rs 601- August and Rs 605 - September. Soya refined oil was at Rs 735-738, Sunflower refined oil at Rs 760-763. Allana’s rate for palmolein was Rs 609 and super palmolein Rs 654. Vaibhavi quoted palmolein at Rs 606 for September. In Saurashtra – Rajkot, groundnut oil ruled weak on account of progressing monsoon at Rs 1,890 (Rs 1,900) for Telia tin and Rs 1,230 (Rs 1,235) for loose-10kg.

On National Board of Trade – Indore, soya refined oil August futures was steady at Rs 772 (Rs 771) while September was Rs 778 (Rs 777.30). Malaysia's crude palm oil September contracts settled at MYR 2,843 (MYR 2,827), October was MYR 2,882 (MYR 2,865) and November at MYR 2,909 (MYR 2,884) a tonne.

The Bombay Commodity Exchange spot rates were (Rs/10 kg): groundnut oil 1,220 (1,220), soya refined oil 735 (735), sunflower exp. ref. 700 (705), sunflower ref. 760 (760), rapeseed ref. oil 880 (880), rapeseed expeller ref. 850 (850) cotton ref. oil 740 (740) and palmolein 604 (606).

(This article was published on August 10, 2012)
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