Imported palmolein and soya oil increased marginally by Re 1 and Rs 5 for 10 kg on Monday on higher rates quoted by local refiners despite weak foreign markets. Indigenous groundnut, cottonseed and sunflower oils ruled steady. Rapeseed oil declined by Rs 5 for 10 kg. In absence of new demand, volumes remained thin. Malaysian crude palm oil futures ended lowest since June 15 on sluggish palm oil exports while Chicago soya oil projection was weak despite bullish US Department of Agriculture data for soyabean and soya oil.
A Mumbai-based broker said the market was tepid in absence of fresh demand and higher sales in the resale market. About 50-60 tonnes of palmolein was traded in the resale market at Rs 606-607. There were direct trades with refiners as they increased prices after the bullish USDA soya reports. Traders said 100-150 tonnes of palmolein was covered by Gujarat-based buyers at Rs 610 on stock-transfer basis.
A commodity analyst said Malaysian palm oil stocks hit a five-month high of nearly 20 lakh tonnes and weak Chicago projections resulted in heavy selling in Malaysian palm oil futures. Build-up of palm oil stocks could continue well into August on possible sluggish exports.
At the end of the day, Liberty quoted palmolein at Rs 610-612, super palmolein at Rs 651-653, soya oil at Rs 745 and sunflower refined oil at Rs 768. Ruchi quoted palmolein at Rs 608 for August delivery and at Rs 610 for September, soya refined oil at Rs 743-746, and sunflower refined oil at Rs 765-768. Allana offered palmolein for Rs 610 and super palmolein for Rs 651. In Saurashtra and Rajkot, groundnut oil decline to Rs 1,880 (Rs 1,890) for a telia tin and to Rs 1,225 (Rs 1,240) for loose (10 kg) on satisfactory progress of monsoon in producing areas.
On the National Board of Trade in Indore, soya refined oil’s August contracts declined to Rs 775 (Rs 777) while September was down to Rs 783 (Rs 786). Malaysia’s crude palm oil’s September contracts closed at MYR 2,830 (MYR 2,843), October at MYR 2,871 (MYR 2,882) and November at MYR 2,900 (MYR 2,909) a tonne.
The Bombay Commodity Exchange spot rates (Rs/10 kg): groundnut oil 1,220 (1,220), soya refined oil 740 (735), sunflower exp. ref. 700 (700), sunflower ref. 760 (765), rapeseed ref. oil 880 (885), rapeseed expeller ref. 850 (855), cottonseed ref. oil 740 (740) and palmolein 608 (607).