Imported edible oils continued to make heavy loss tracking bearish Palm oil and Soya oil futures overseas. Palmolein and soya oil lost by Rs 10 and Rs 7 each as local refineries have reduce their rates following sharp drop in Malaysian palm oil futures which closed lower by 82, 82 and 57 ringgits a tone. Cotton refined oil drop by Rs 6 per 10 kgs. In Malaysia people are cashing out on the weather and improve prospects for crops especially in India and U.S. side, said a trader.

Malaysian palm oil market was under tremendous pressure. Groundnut oil, Rapeseed oil and Sunflower oil rule steady despite weak reports from producing centers. Groundnut oil in Rajkot – Saurashtra decline further by Rs 40 on higher on sign of improvement in new arrivals.

Leading trader said in physical market due lack of local demand in month end and increasing pressure of new arrivals at producing level kept sentiment weak. Resellers were ready to sell at lower rates to curb further loses and to avoid building up new inventory. Tracking bearish futures markets local refineries have reduced their rates for edible oils. But slack buying interest of retailers kept wholesalers away from fresh bet. There were no big activities except 40- 50 tones of Palmolein change hand at Rs 575 during the day. Signs of better soyabean crop in the U.S. and in Brazil brighten the oilseeds supply prospects. Domestic level new arrivals of kharif crops have already started and will increase from next months.

Towards the end of the day Liberty was quoting Palmolein at Rs.575-Rs.578, Super palmolein Rs.625, Soya oil Rs.743 and Sunflower refined oil Rs.775. Ruchi quoted palmolein Rs 570 – 575, Super Palmolein Rs 620 - Rs 625, Soya refined oil Rs.738 and Sunflower refined oil Rs 768. Allana’s rates were Rs 575 for Palmolein and Rs 625 for Super Palmolein. Vaibhavi’s rates were Rs 575 – Rs 578. In Saurashtra – Rajkot Groundnut oil drop further by Rs 40 to 1,640 (Rs 1,680) for Telia tin and decline by Rs 20 to Rs 1,070 (Rs 1,090) for loose 10 kgs.

On National Commodities and Derivatives Exchange, soyabean refined oil futures drop by more than 3 % on heavy selling. End of the day October futures was Rs 717.00 (Rs 742.45) and November at Rs 704.98 (Rs 726.75). Malaysia's crude palm oil October -12 contracts closed at MYR 2,593 (2,675), November -12 was MYR 2,693 (2,775) and December -12 at MYR 2,763 (2,820) a ton.

The Bombay Commodity Exchange spot rates were (Rs/10 kg): groundnut oil 1,110 (1,110), soya refined oil 740 (747), sunflower exp. ref. 715 (715), sunflower ref. 770 (775), rapeseed ref. oil 850 (850), rapeseed expeller ref. 820 (820) cotton ref. oil 730 (736) and palmolein 572 (582).

(This article was published on September 21, 2012)
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