A steady trend prevailed in the edible oils market on Wednesday in absence of demand as stockists covered good quantity for the forthcoming festival season on Tuesday.

Continued selling by refiners, ample supply, adequate stocks of imported oils at domestic level along with good progress in kharif sowing kept domestic physical and futures market bearish, pushing soya oil and palm oil futures prices down.

A Mumbai-based broker said that despite firm report from the Malaysian market, palmolein, soya oil, groundnut oil price ruled unchanged. Sunflower oil and cotton oil declined by Rs 5 and Rs 3/ 10 kg, tracking weak trend in producing centres. Rapeseed oil recovered by Rs 3 after Tuesday's fall. The volume was negligible as traders have bought large quantity on the previous day. Month-end thin consumer demand kept away fresh bet, said a leading broker.

According to industry executives during festival months of August and September, the monthly average consumption of edible oils will increase to 15-16 lakh tonnes compared with the normal monthly average of 12.50-13 lakh tonnes.

In the beginning of July, edible oil stocks totalled about 15 lakh tonnes (including physical and in pipeline) and at the beginning of August, they are expected to be 15.50/16 lakh tonnes. This indicates that there will be higher supply than demand in the domestic market.

Market sources said after reduced export duty from August, Indonesian exporters may send palm oil to India without prior commitment. This will put more pressure on the physical market. In the coming months about nine lakh tonnes of import is expected. In Mumbai, bear traders were seller of Palmolein at Rs 553 in resale.

Liberty's rates: palmolein Rs 560, soya oil Rs 647, sunflower oil Rs 700. Ruchi was quoting palmolein at Rs 555, soya refined oil Rs 640 and sunflower oil Rs 695.

Allana's palmolein was Rs 558. In Rajkot-Saurashtra, groundnut oil price were further down by Rs 10 to Rs 1,500 (Rs 1,510) for telia tin and loose — 10 kg lose Rs 10 to Rs 970 (Rs 980).

Malaysia's BMD CPO August contracts ended at (MYR/tonne): 3,130 (3,117), September at 3,133 (3,119) and October at 3,130 (3,119). Indore, NBOT soya oil August-11, futures closed lower at Rs 661.50 (Rs 666.30) and September-11 Rs 661.00 (Rs 662.30).

Bombay Commodity Exchange spot rate (Rs/10kg) : Groundnut oil Rs 970 (Rs 970), soya refined oil Rs 645 (Rs 645), sunflower exp. ref. Rs 655 (Rs 660), sunflower ref. Rs 705 (Rs 710), rapeseed ref. oil Rs 698 (Rs 695), rapeseed expeller ref. Rs 668 (Rs 665), cotton ref. oil Rs 666 (Rs 668) and palmolein was Rs 555 (Rs 555).

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