Imported Palmolein and Soyabean refined oil inched up by Rs 3 each on Tuesday due to tight supply and considering higher import parity due to strong US dollar. Sunflower, Groundnut and rapeseed oil rule steady despite bearish reports from producing centers. Cotton refined oil decline by Rs 2 on weak cotton markets. Local refineries quoted Palmolein by Rs 5 higher from previous day but not responded well by traders. Volume remained need based. Moral was weak. Four days left to start Diwali but physical demand is not as expected sources said in a concern voice.
Malaysian palm oil futures edged down on Tuesday as investors remained cautious on market expectations of record high stocks in October. BMD CPO futures closed lower by 27, 39 and 30 ringgits tone. Analyst said Market initially edged up but recovering could not sustain the rally on concerns over stockpiles and uncertainty ahead of the U.S. elections. Malaysian Palm Oil Board (MPOB) will issue October stocks data on the coming Monday. Palm oil stock in Malaysia is expected to reach 2.7 million tonnes. Domestic level indigenous edible oils will behave under seasonal arrivals pressure. Higher arrival of oilseeds is expected in coming days.
Market sources said tracking weak futures market and strong US dollar, stockiest keep away from fresh bulk buying. Needy traders covered about 500 – 550 tones of palmolein at Rs509 - 510 during the day from resellers and from Kamani. Apart from that there were no activities despite Diwali festivals knocking the door. Indian currency was Rs54.43 (Rs 54.65) against US Dollar.
End of the day Liberty was quoting Palmolein at Rs 515 –Rs 517 and Super palmolein Rs.572 for delivery from 10 Nov to 15 Dec., Soya refined oil Rs.663 up to 15 Dec. Ruchi quoted palmolein Rs 511 for 10 Nov - 31 Dec., Super Palmolein Rs 572 for 15 Nov – 31 Dec. Soyabean refined oil Rs.658 and Sunflower refined oil Rs 720. Allana’s rate for Super Palmolein was Rs.568 for weekly delivery. In Saurashtra – Rajkot market Groundnut oil Telia Tin extended loss further by Rs50 to Rs1750 (Rs1800) and loose 10 kgs was down by Rs20 to Rs1150 (Rs.1170).
On National Commodities and Derivatives Exchange, soyabean refined oil December futures closed lower by Rs3.40 to Rs 665.10 (Rs668.50) and January closed lower Rs667.65 (Rs 672.15). Malaysia's crude palm oil December -12 futures closed lower at MYR 2,325 (2,352), January -13 at MYR 2,372 (2,411) and February settled at MYR 2425 (MYR 2455) a ton.
The Bombay Commodity Exchange spot rates were (Rs/10 kg): groundnut oil 1,160 (1,160), soya refined oil 658 (655), sunflower exp. ref. 665 (670), sunflower ref. 725 (720), rapeseed ref. oil 835 (835), rapeseed expeller ref. 805 (805) cotton ref. oil 688 (690) and palmolein 513 (510).