Groundnut oil and cottonseed refined oil were up Rs 5 and Re 1 for 10 kg each despite weak reports from producing centres. Imported palmolein and soyabean refined oil dropped by Rs 2 and Rs 3 for 10 kg each on lack of demand and weak overseas markets. Sunflower oil and rapeseed oil ruled unchanged. Malaysian palm oil futures edged down on Thursday, as data showed stockpiles in the world’s No.2 producer remained high and on improving weather in key soya-growing regions in South America.
Seasonally slowing production in Malaysia could see stockpiles in February easing but inventory levels are unlikely to dip below 20 lakh tonnes in the first quarter of 2013, according to analysts. This should keep crude palm oil prices below 3,000 ringgit a tonne in the first quarter of 2013.
As stockists have covered enough for February, they preferred to stay away from fresh ready buying but took fresh positions for March delivery, a broker said. Local refiners have started quoting palmolein for March Rs 2-5 higher and about 700-800 tonnes was traded directly with two local refiners, the broker added. There were no direct volumes for February delivery with them, as resellers were offering at Rs 5 less. Resellers traded only 50-60 tonnes of palmolein. Indigenous edible oils were under pressure of new arrivals of crops in producing areas.
Towards the end of the day, Liberty was quoting palmolein at Rs 511-513 for February and at Rs 515-517 for March, super palmolein at Rs 560 and sunflower refined oil at Rs 800 for February. Ruchi quoted palmolein at Rs 507-510, soyabean refined oil at Rs 695 and sunflower refined oil at Rs 775 for February and Rs 515-518 for palmolein for March. Allana offered palmolein at Rs 510 and super palmolein at Rs 560 for February. In Saurashtra and Rajkot, groundnut oil declined to Rs 1,910 (Rs 1,920) for a 15-kg telia tin and to Rs 1,240 (Rs 1,250) for loose (10 kg).
On the National Commodities and Derivatives Exchange, soyabean refined oil’s March contract was up at Rs 703.55 (Rs 695.20), April at Rs 692.65 (Rs 685.90) and May at Rs 690.45 (Rs 685.35).
Malaysia’s crude palm oil’s March contracts settled lower at MYR2475 (MYR2,484), April at MYR2,495 (MYR2,505) and May at MYR2,512 (MYR2,522) a tonne.
The Bombay Commodity Exchange spot rates (Rs/10 kg): groundnut oil 1,240 (1,235), soya refined oil 692 (695), sunflower exp. ref. 710 (710), sunflower ref. 780 (780), rapeseed ref. oil 775 (775), rapeseed expeller ref. 745 (745) cottonseed ref. oil 610 (609) and palmolein 505 (507).