Sentiment in edible oils markets remained bearish on Friday following volatile futures and currency markets. Imported palmolein declined by Rs 2, while new crop arrivals pushed down cotton refined oil by Rs 3 for 10 kg. Soyabean refined oil was offered at Rs 10 lower in resale compared to refiners but there were no buyers.

Other edible oils remained unchanged. A Mumbai-based broker said the Indian rupee broadly followed the gains in domestic equity markets as there is a possibility of strong inflows from foreign investors. Weak dollar made import parity lower.

Local refineries have reduced their rates for palmolein. Activities remained dull and isolated. Traders were waiting for cargo surveyor data on Malaysia's Dec. 1-10 palm oil exports on Monday to confirm strong demand. Export data may be even stronger as Malaysian planters scramble to exhaust an annual tax-free export quota totaling 35 lakh tonnes that is set to expire at the end of December. At home cotton refined oil was under pressure as daily arrivals of cotton reached to 1.50 lakh bales.

During the day, Liberty and Ruchi both sold about 150-200 tonnes of palmolein each in the range of Rs 490-492 while in soya oil resellers were quoting Rs 10 lower at Rs 690 than refiners but there were no buyers.

Towards the day’s close, Liberty was quoting palmolein at Rs 490-492, super palmolein at Rs 545 for Jan 1-15, soya refined oil at Rs 703 and sunflower refined oil at Rs 782. Ruchi quoted palmolein at Rs 490 for Jan, soyabean refined oil at Rs 700, sunflower refined oil Rs 781 for Dec 20-31 and Rs 785 for January. Allana offered palmolein at Rs 490 and super palmolein at Rs 545. In Saurashtra and Rajkot, groundnut oil remain unchanged Rs 1,980 for a telia tin and Rs 1,290 for loose 10 kg.

On the National Commodities and Derivatives Exchange, soyabean refined oil’s January contracts was lower at Rs 711.10 (Rs 714.30), February was Rs 740.35 (Rs 703.65) and March Rs 696.30 (Rs 698.65). Malaysia’s crude palm oil’s January contracts settled at MYR 2,212 (MYR 2,215), February MYR 2,296 (MYR 2,295) and March MYR 2,355 (MYR 2,354) a tonne.

The Bombay Commodity Exchange spot rates (Rs/10 kg): groundnut oil 1,260 (1,260), soya refined oil 700 (700), sunflower exp. ref. 715 (715), sunflower ref. 780 (780), rapeseed ref. oil 815 (815), rapeseed expeller ref. 785 (785) cottonseed ref. oil 642 (645) and palmolein 490 (492).

Vikram Commodities quoted Rs 566 for 10 kg ex-Chennai Malaysian Super Palmolein for delivery in second week of December.

(This article was published on December 7, 2012)
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