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In the absence of ready demand, prices of most edible oils declined on Thursday. Malaysian palm oil futures rose for the second consecutive day but did not impact domestic markets as local refineries had reduced the rates for palmolein and soya oil by Rs 3-5 at the start of the day.
In the spot market, palmolein declined by Rs 2, rapeseed oil by Rs 5, cotton oil by Rs 4, and sunflower expeller refined oil by Rs 10. Soya oil and sunflower refined oil ruled steady. Groundnut oil rose further by Rs 10, tracking firm reports from producing centres.
Source said less-than-sufficient supply and lack of demand kept overall sentiment weak despite higher closing of the Malaysian market. Selling by Gujarat-based importers at lower price parity led Mumbai-based refineries to reduce the rates of palmolein and soya oil.
Winter demand
During winter, demand for palm oil eases while that of indigenous oils rises. According to traders, volumes in the in physical market were nominal. Stockists have covered some 450-500 tonnes of palmolein at Rs 580-582, directly from a refinery for forward delivery.
Resellers were offering palmolein at Rs 578-580. At the end of the day, Liberty was quoting palmolein at Rs 580-582 for December-January delivery, and super palmolein at Rs 600. Ruchi was quoting palmolein at Rs 581, soya refined oil at Rs 663 and sunflower refined oil at Rs 701 for January.
Allana's palmolein was Rs 582 for December 31. Mewah was quoting palmolein at Rs 582 for December and super palmolein, at Rs 600. In Saurashtra, Rajkot cotton oil was up Rs 615-616 (610-612). Groundnut oil was Rs 1,500 (1,500) for Telia tin and Rs 975 (980) for loose — 10 kg.
Malaysia's BMD CPO's January-12 contracts settled higher at MYR 3,095 ( 3,074), February-12 MYR 3,100 (3,075), March-12 MYR 3,097 (3,072) and April-11 MYR 3,090 (3,065) a tonne.
Soya oil for January-12 futures closed lower at Rs 678 (679) on the National Board of Trade in Indore.
Bombay Commodity Exchange spot rates (Rs/10 kg) : groundnut oil 980 (970); soya refined oil 660 (660); sunflower exp. ref. 650 (660); sunflower ref. 710 (710); rapeseed ref. oil 770 (775); rapeseed expeller ref. 740 (745); cotton ref. oil 628 (632); and palmolein 581 (583).
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