Agri Business

Edible oil dips tracking Malaysia market

Our Correspondent Mumbai | Updated on February 08, 2011

An edible oil retail outlet (File photo): Arunangsu Roy Chowdhury   -  Business Line

Edible oil prices in Mumbai ruled firm in post-noon trade, taking cues from higher Malaysian market closing, on Tuesday.

Till noon, tracking the weak Malaysian market, prices of palmolein fell by Rs 3.

Cotton oil was down by Rs 2, on selling by Dhulia line millers. Other edible oil prices were steady.

Morale was firm after the Malaysian market closed.

Indore NBOT soya oil futures also rebounded from its low level.

In the Rajkot market, with higher arrivals in the southern States and fresh buying by exporters, groundnut oil ruled steady. There, Telia tin price was Rs 1,160 (Rs 1,160) and loose was Rs 750 (Rs 750) for 10 kg.

Leading wholesalers said that due to limited and need-based buying by stockists, and due to the absence of active demand from consumers, market trend at local level looked weak in line, despite the firm foreign markets.

About 400 tonnes of palmolein was sold by Liberty at Rs 608, and then it raised the rates. Around 100-120 tonnes of palmolein was resale traded in the range of Rs 601-602.

After registering active trade in cotton refined oil, buying by stockists eased to almost zero, on Tuesday. Dhulia-side producers were selling at Rs 620, but got no response.

In Mumbai, direct refineries were quoting higher rates.

Liberty was quoting palmolein at Rs 617, Ruchi was quoting Rs 613-614 for palmolein, soya refined oil at Rs 635 and sunflower refined oil at Rs 705.

Malaysian BMD CPO futures closed higher by 1,523 ringgits. CPO Futures recovered early losses, as crude and soya oil futures reversed overnight falls.

Fundamentals also found support, with traders now expecting a sharp drop in Malaysia's January palm oil output.

Malaysia's CPO futures - NBOT futures

Malaysia's BMD CPO futures February-10 closed at MYR 3,925 (3,910), March-11 was at 3,913 (3,890) MYR. Indore NBOT soya oil futures February– 11 fell to Rs 645 (Rs 649) and March-11 to Rs 664.50 (Rs 666.50).

Mumbai commodity exchange spot rate (Rs/10kg):

Groundnut oil 760 (760), soya refined oil 630 (630), sunflower expeller refined 680 (680), sunflower refined 725 (725), rapeseed refined oil 660 (660), rapeseed expeller refined 630 (630), cotton refined oil 618 (620) and palmolein was 605 (608).

Published on February 08, 2011

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