Agri Business

Edible oil remains steady on thin demand

Our Correspondent Mumbai | Updated on February 11, 2011


Edible oil prices in the Mumbai market ruled steady on Friday, on lack of demand and under resale selling pressure.

The Malaysian market closed higher but this did not have an impact here.

Soya refined and palmolein declined by Re 1 and Rs 2 respectively, on lack of demand, despite the higher closing of foreign markets.

Resale selling pressure in these categories of oil for due date kept market volume very thin. Morale was steady.

Groundnut oil, sunflower oil, rapeseed oil and cotton oil ruled steady. India's Indore NBOT soya oil futures witnessed a positive trend, on the back of a firm Malaysian market.

Market sources said that, on Friday, only around 50-60 tonnes of palmolein were resale traded, in the range of Rs 610-612, in the Mumbai market.

Volume with direct refineries was almost zero, as they were quoting higher rates.

For indigenous oils, reports from producing centers showed weak trend. In the Rajkot market, groundnut oil fell by Rs 10-20 to Rs 1,165 (Rs 1,185) for a Telia tin, and Rs 755 (Rs 765) for loose 10 kg. In Mumbai, Ruchi was quoting palmolein at Rs 616, soya refined oil at Rs 633-635, and sunflower refined oil at Rs 704. Allana's was quoting palmolein at Rs 623.

Malaysian BMD CPO futures closed higher by 22 and 16 ringgits, as demand-supply factors were supportive. The signing of the free trade agreement (FTA) between Malaysia and India will boost Malaysia's palm oil sector.

Malaysia's palm oil stocks are poised to drop further this month, after hitting a six-month low in January, as heavy rains and floods continue to dampen output.

According to SGS reports, Malaysia's palm oil exports in February 1-10 was 426,163 tonnes, up 28.5 per cent from 331,655 tonnes during January 1-10.

Crude palm oil futures on Malaysia's derivatives exchange will likely remain at elevated levels during the first half of the year, averaging MYR 3,900 a tonne in the January-March period, as heavy rains due to La Nina weather conditions continue to hamper palm oil supply, Rabobank said on Friday.

Malaysia's CPO futures - NBOT futures

Malaysia's BMD CPO futures February-10 closed at MYR 3,988 (3,966), March-11 was at 3,970 (3,954) MYR. Indore NBOT soya oil futures February–11 was Rs 645.40 (Rs 646.50) and March-11 was Rs 668.30 (Rs 665.80).

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

Groundnut oil 765 (765), soya refined oil 635 (636), sunflower expeller refined 680 (680), sunflower refined 720 (720), rapeseed refined oil 655 (655), rapeseed expeller refined 625 (625), cotton refined oil 625 (625) and palmolein was 608 (610).

Published on February 11, 2011

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