Edible oils market witnessed dull trading day in absence of active buying on Wednesday. The Bombay Commodity Exchange remained closed for Gurunanak Divas. Domestic futures market was also closed so there were no cues for the physical market barring foreign markets.
Shailesh Kataria, a leading broker, said that in indigenous edible oils such as groundnut, cotton, sunflower and mustard oil, the undercurrent was positive as arrivals are not picking up as expected. Market witnessed isolated volume in palmolien after a leading refinery reduced its rate for the commodity by Rs 4 to Rs 511 for delivery up to Dec 10.
He said that in winter domestic demand for palmolein generally eases because it freezes. Speculation that Malaysian palm oil inventory level could hit a record high this month kept prices under check. Palm oil stocks hit a record high in October at 25 lakh tonnes on seasonally high production but some traders believes that a slower output this month may ease pressure on stocks.
Towards the day’s close, Liberty was quoting palmolein at Rs 520-522 for Dec and Rs 524 for Jan, super palmolein at Rs 575, soya refined oil at Rs 712 and sunflower refined oil at Rs 785 for Nov-Dec. Ruchi quoted palmolein at Rs 511 for Dec 10, Rs 518 for Dec 11-31, and Rs 521 for Jan, soyabean refined oil at Rs 708 for Nov-Dec and sunflower refined oil Rs 778 for Dec 10-31. Allana offered palmolein at Rs 516 and super palmolein at Rs 570.
In Saurashtra and Rajkot, groundnut oil was up by Rs 10 to Rs 2,000 for telia tin and by Rs 10 to Rs 1,310 for loose (10 kg).
Malaysia’s crude palm oil’s January contracts settled at MYR2,326 (MYR2,355), February at MYR2,394 (MYR2,410) and March at MYR2,435 (MYR2,450) a tonne.
In Mumbai market, spot rates (Rs/10 kg): groundnut oil 1,260 (1,250), soya refined oil 705 (700), sunflower exp. ref. 710 (705),
sunflower ref. 775 (775), rapeseed ref. oil 850 (847), rapeseed expeller ref. 820 (817) cottonseed ref. oil 685 (680) and palmolein 513 (514).