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The edible oils market remained bearish on Monday, taking cues from the continuing decline at markets in Malaysia and Chicago, amid concerns that Japan's earthquake could damage regional economies and demand for commodities.
In line with the foreign markets, palmolein declined by Rs 4, soya refined oil by Re 1, rapeseed oil by Rs 2, cotton oil by Re 1 and sunflower oil by Rs 5 for 10 kg. Only groundnut oil ruled unchanged on steady reports from Gujarat and South India. Higher arrivals of seeds kept indigenous oils under check. Bearish trend at Indore soya futures weighed on the spot market that witnessedlimited resale volume. Morale was weak.
Crude palm oil (CPO) futures on Bursa Malaysia Derivatives (BMD) closed lower for the fifth consecutive day. Traders continued to book profits on speculation that rising soybean oil supplies from Argentina and Brazil may cool demand for the palm oil, said sources.
Market sources said in absence of fresh local demand and need-based physical buying volumes remained negligible. In resale, traders were unwilling to bet for fresh bulk-buying even at lower rates. Refineries were also quoting palmolein and soyabean oil at par with the market, but the response was poor because of cheaper offers from resalers. Hardly 100-120 tonnes of palmolein was resale-traded at Rs 560-563. In Mumbai, Liberty was quoting palmolein at Rs 570-572. Ruchi was quoting it at Rs 566-568, soya refined oil at Rs 605 and sunflower oil at Rs 681.Allana quoted palmolein at Rs 568. In Rajkot, groundnut oil ruled unchanged at Rs 1,145 (Rs 1,145) for telia tin and Rs 740 (Rs 740) for loose 10 kg. India's total oilseed output in this marketing year is expected to rise 11.8 per cent from a year earlier, as higher edible oil prices encouraged farmers to increase plantings, sources added. Malaysia's BMD CPO futures closed 70, 36 and 29 ringgits a tonne.
Malaysia's BMD CPO futures March-11 closed at MYR3,350 (MYR3420), April-11 at MYR3,363 (MYR3,399), May-11 at MYR3,335 (MYR3,364) a tonne. Indore NBOT soya oil futures April-11 closed at Rs 604.8 (Rs 613.6).
Mumbai commodity exchange spot rates (Rs/10 kg): Groundnut oil 745 (745), soya refined oil 597 (598), sunflower exp. ref. 635 (635), sunflower ref. 690 (695), rapeseed ref. oil 610 (612), rapeseed expeller ref. 580 (582), cotton ref. oil 595 (596) and palmolein 564 (568).
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