Agri Business

Edible oils decline on global cues

Our Correspondent Mumbai | Updated on April 12, 2011

edible oils

Taking cue from the weak global markets, most edible oil prices came down on Tuesday. In line with bearish Malaysian and Chicago market, palmolein declined Rs 3 and soya oil cooled down by Rs 2 for 10 kg. Malaysia BMD CPO futures remained in the negative territory. Sunflower oil lost Rs 10, rapeseed oil and Cotton-refined oil declined by Rs 5 each for 10 kg. Only groundnut oil, despite a drop of Rs 10 in “loose” for 10 kg, at the Saurashtra market, ruled steady in Mumbai on brand-maker's demand.

China's soyabean imports in April will likely reach 42.80 lakh tonnes, the Ministry of Commerce said Tuesday. China may step up sales of soyabean from state reserves at below-market prices to assist oilseed crushers who are struggling due to state-mandated anti-inflation price caps, traders said on the sidelines of an industry conference Tuesday.

Meanwhile, Mr Dorab Mistry, Director of Godrej International Ltd, said on Tuesday, palm oil may drop to less than 3,000 ringgit a tonne as output expands, before prices rally on growing use of soyabean oil in US bio-diesel. Sharply higher crude palm oil production in Indonesia even as India's palm oil imports decline may combine to push palm oil prices below MYR 3,000 a tonne in the next few months.

At main producing levels, expected higher arrivals of soyabean, rapeseed and groundnut and absence of demand due to festival, kept these oils under check. In Mumbai market, in the absence of demand, there was almost nil trade in second consecutive day.

Published on April 12, 2011

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