Palmolein and rapeseed oil fell by Rs 2 for 10 kg each on Tuesday, as local demand eased and Malaysian palm oil futures turned bearish. Soya oil futures were down Rs 3 for 10 late evening tracking weak Malaysian markets.
Groundnut oil rose in Saurashtra but remained unchanged in Mumbai due to lack of demand. Cottonseed refined oil, soyabean refined oil and sunflower oil also ruled steady. A weaker rupee against the dollar has forced local refiners to increase prices. Volumes were need-based.
A commodity analyst said Malaysian palm oil futures edged down, as traders booked profits from a near one-week high after Greece’s international lenders agreed on a financial-aid deal.
At home, investors are following Malaysian palm oil output data to gauge whether stocks will reach another record high, especially after the latest cargo surveyor data pointed to weaker export demand.
Lower arrivals in main producing areas pushed up prices of indigenous oils. Cold weather has improved demand prospects except for palmolein which freezes at lower temperatures.
In Gujarat, groundnut oil continued to rise on shortage of nuts for crushing. In Saurashtra, 30,000-35,000 bags arrived. Soyabean arrivals in Madhya Pradesh were 3.5 lakh bags and in Rajasthan and Maharashtra 1.5 lakh bags.
A wholesale broker said during the day, merely 450-500 tonnes were traded here. Liberty sold 50-100 tonnes of soyabean refined oil at Rs 707-708. Ruchi sold 250-300 tonnes of palmolein at Rs 515 for delivery up to December 10. Allana sold about 80-100 tonnes of palmolein at Rs 514. in the resale market, 80-100 tonnes of palmolein were traded at Rs 512-513.
At the end of the day, Liberty was quoting palmolein at Rs 520-522, super palmolein at Rs 574, soya refined oil at Rs 707 and sunflower refined oil at Rs 785. Ruchi quoted palmolein at Rs 518, soyabean refined oil at Rs 705 and sunflower refined oil Rs 775. Allana offered palmolein at Rs 514 and super palmolein at Rs 570. In Saurashtra and Rajkot, groundnut oil was up to Rs 1,990 (Rs 1,950) for a telia tin and to Rs 1,300 (Rs 1,270) for loose (10 kg).
On the National Commodities and Derivatives Exchange, soyabean refined oil’s December contracts dropped to Rs 726.80 (Rs 729.65), January to Rs 718.15 (Rs 721.10) and February to Rs 709.30 (Rs 712.35).
Malaysia’s crude palm oil’s December contracts settled at MYR2,178 (MYR2,265), January at MYR2,355 (MYR2,385) and February at MYR2,410 (MYR2,432) a tonne.
The Bombay Commodity Exchange spot rates (Rs/10 kg): groundnut oil 1,250 (1,250), soya refined oil 700 (700), sunflower exp. ref. 705 (705), sunflower ref. 775 (775), rapeseed ref. oil 845 (847), rapeseed expeller ref. 815 (817) cottonseed ref. oil 680 (680) and palmolein 514 (516).