Edible oils market witnessed downward pressure in the absence of fresh demand after Diwali and extended loss in world Palm–Soya complex. Tracking weak global market and higher arrivals of seeds at domestic level, palmolein dropped by Re 1, soya oil by Rs 5, cotton oilby Rs 3, rapeseed oilby Rs 3 and sunflower oil by Rs 5. Groundnut oil ruled steady despite improvement in the Saurashtra market. Volume was negligible as traders kept away due to increased re-sale pressure for ready delivery order. Morale was weak, said traders.

Mr Santosh Shethia, a leading broker, said, after Diwali local demand disappeared. On Diwali Muhurat trade, local stockists have covered good quantity of imported oils directly with refineries for ready and futures delivery.

After Diwali, market is under pressure due to continuous decline hence traders are keeping away from fresh physical buying. Futures market is also on a bearish trend keeping speculators away from taking long position. Domestic level new arrivals of groundnut, soyabean and cotton rose sharply in the last two days and are expected to improve further in the coming days.

Malaysia's BMD CPO futures recovered in early trade as Malaysia's high production cycle ends but later closed lower tracking the downtrend in the Chicago Board of Trade soya oil prices despite strong export data, dealers said. BMD CPO futures settled lower by 17, 21, 15 and 17 ringgits a tonne.

Domestic soyabean arrivals in Maharashtra and Madhya Pradesh reached 9-10 lakh bags while groundnut arrivals in Saurashtra region was about 1 lakh bags and all-India was 2.00-2.50 lakh bags. Despite arrivals pressure, groundnut oil price ruled firm in Saurashtra on brand makers fresh buying. Most oil millers in region have started groundnut crushing from Labh Panchami (Monday) leads to higher demand for seeds. The bearish sentiment prevailing in the world crude palm and soya oil market is likely to continue this week, said analyst.

In the local market, in the absence of demand, volume was negligible. Weakness in foreign markets (palm, soya, crude oil) weighed on sentiment. Resale palmolein was ruling at Rs 531-532. End of the day Liberty's rates for palmolein was Rs 535–536, Super Palmolein Rs 570 and Soya refined oil Rs 622. Ruchi was quoting Palmolein at Rs 533 for November delivery. Soya refined oil Rs 620 for November delivery. Allana's Palmolein was Rs 535 for 15-25 November delivery. In Saurashtra - Rajkot groundnut oil increased by Rs 15 to Rs 1,310 (Rs 1,295) for Telia tin and loose – 10 kg by Rs 10 to Rs 845 (Rs 835). Cotton wash was ruling at Rs 610-611.

Malaysia's BMD CPO's November contracts settled MYR 2,925 (MYR 2,942), December -11, MYR 2,923 (MYR 2,944), January-12 to MYR 2,923 (MYR 2,938) and February-11 MRY2920 (MRY2937) a tonne. Soya oil for November delivery settled lower at Rs 617.50 (Rs 621.00) while December -11 settled at Rs 614.00 (Rs.616.80) on National Board of Trade in Indore.

Bombay Commodity Exchange spot rates (Rs/10 kg): groundnut oil 860 (860), soya refined oil 620 (625), sunflower exp. ref. 645 (645), sunflower ref. 700 (705), rapeseed ref. oil 707 (710), rapeseed expeller ref. 677 (680), cotton ref. oil 628 (631) and palmolein 533 (534).

Related Topics
comment COMMENT NOW