Agri Business

Edible oil prices steady as markets remain closed

Our Correspondent Mumbai | Updated on November 07, 2011


In the absence of cues from foreign and domestic futures markets, which were closed on account of holiday, edible oil prices showed steady to weak trend on Monday. Malaysian BMD CPO futures market was closed on account of ID-UL-ADHA and the Mumbai edible oils market was also officially closed. Malaysian BMD CPO futures increased by about 100 ringgits a tonne in the last three days of the previous week but were not reflected in the domestic market on routine and sufficient supply from refineries and eased demand locally. Palmolein ruled almost steady. Festival demand is over and in the middle of the month demand will go down further so the local market may witness selling pressure and bearish sentiment, said a wholesaler.

He further added that seasonal arrivals are increasing day by day in the domestic markets and are expected to increase further and this will add more pressure on indigenous oils. At the domestic level, total daily arrivals of soyabean reached 9-10 lakh bags, while groundnut arrivals crossed 2 lakh bags. Soyabean production is expected to reach 115 lakh tonnes compared with 95 lakh tonnes last year while groundnut's kharif crop will be around 41.75 lakh tonnes, industry group estimates.

Zero selling volume

In the absence of active buying, selling volume was almost zero. End of the day palmolein was quoting at Rs 530 in resale. Liberty's rates for palmolein were Rs 535–536 for November, Super Palmolein was Rs 570 and soya refined oil Rs 618. Ruchi was quoting palmolein at Rs 528, Soya refined oil Rs 616 and Sunflower oil Rs 675 for 20-30 November. Allana's Palmolein was Rs 535 for 20- 30 November delivery. In Saurashtra – Rajkot, groundnut oil ruled steady at Rs 1,295 (Rs 1,295) for Telia tin and Rs 845 (Rs 840) for loose – 10 kgs. Cotton wash increased to Rs 612-613 on fresh buying.

On Friday, Malaysia's BMD CPO's December contracts settled at MYR 3021 (MYR 2976), January -11, MYR 3013 (MYR 2976), February-12 to MYR 3019 (MYR 2981) and March-11 MRY3016 (MRY 2985) a tonne. Soya oil futures at National Board of Trade in Indore closed Rs 623.50 (Rs 624.20) for November delivery and Rs 623.50 (Rs 621.00) for December -11 on Saturday.

In Mumbai, rates (Rs/10 kg) for edible oils were groundnut oil 850 (855), soya refined oil 614 (615), sunflower exp. ref. 620 (625), sunflower ref. 685 (690), rapeseed ref. oil 695(702), rapeseed expeller ref. 670(672), cotton ref. oil 615 (616) and palmolein 530 (532).

Published on November 07, 2011

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