Edible oils extended their losses in the physical market on Thursday, taking cues from weak overseas futures markets and lack of demand in physical market. Imported palmolein and soyabean refined oil declined by Rs 3 and Rs 4 each for 10 kg. Cotton refined oil lost by Rs 4. Groundnut oil declined by Rs 20; sunflower oil and rapeseed oil dropped by Rs 10 each on improved selling pressure at producing level.
A broker said that panic selling continued in domestic markets. Bearish foreign and domestic futures markets forced local refineries to reduce their rates for edible oils. Ease in consumers’ demand forced speculators to sell. Resellers, on the other hand, exhausted their positions for loading or lifting at lower rates. Retail demand is also less than expected despite Ganeshotsav. Stockists preferred to fulfil old commitments. Hence, there were no activities in spot market. Signs of better soyabean yield in the US and crop prospects in Brazil brighten the oilseeds supply prospects. Domestic level new arrivals of kharif crops will increase from next month could add more pressure. Towards the end of the day Liberty was quoting palmolein at Rs 585-588, super palmolein Rs 635, soya oil Rs 750 and sunflower refined oil Rs 780.
Ruchi quoted palmolein Rs 582-590, super palmolein Rs 628-635, soya refined oil Rs 748 and sunflower refined oil Rs 775. Vaibhavi’s rates were Rs 585-588. Resellers were quoting palmolein at Rs 578-580. In Saurashtra – Rajkot, groundnut oil dropped by Rs 20 to Rs 1,680 (Rs 1,700) for Telia tin and declined by Rs 10 to Rs 1,090 (Rs 1,100) for loose 10 kg.
Malaysia's crude palm oil Oct contracts closed at MYR 2,675 (2,705), Nov at MYR 2,775 (2,813) and Dec at MYR 2,820 (2,859) a tonne.
The Bombay Commodity Exchange spot rates were (Rs/10 kg): Groundnut oil 1,110 (1,130), soya ref oil 747 (751), sunflower exp. ref. 715 (725), sunflower ref. 775 (785), rapeseed ref. oil 850 (860), rapeseed exp ref. 820 (830) cotton ref. oil 736 (740) and palmolein 582 (585).