Volumes remained thin in the edible oils market as concerns over Eurozone debt, inflation in China and depressed commodity prices in general weakened Malaysian palm oil futures. Market sentiment drooped on absence of new demand in the local market.

Palmolein was up by Rs 2 as refineries raised prices by Rs 2. Resellers, however, sold at lower prices. Cotton oil increased by Re 1. Soya oil was Rs 2 down and groundnut oil lost Rs 5 for 10 kg. Sunflower and rapeseed oils rule steady.

Groundnut oil was firm in Saurashtra because arrivals of seeds were thin. Domestic futures declined toeing the foreign market line. Satisfactory rain in main producing States in the past week has raised hopes of of higher kharif sowing. As of July 8, 54.36 lakh hectares were covered under oilseeds.

Continuing rain, lack of demand and selling by resellers led to negligible volumes. Resellers traded 80-100 tonnes of palmolein at Rs 528-532. In Rajkot and Saurashtra, while the price of a groundnut-oil telia tin bounced back by Rs 15 to Rs 1,490 (Rs 1,475), loose (10 kg) rose by Rs 10 to Rs 965 (Rs 955). Liberty sold palmolein at Rs 535-537 in the local market. Ruchi's price for palmolein was Rs 534, for soya refined oil Rs 626 and for sunflower oil Rs 681. Allana's palmolein was at Rs 534. Resellers sold palmolein at Rs 528-530.

The August contract for crude palm oil on Bursa Malaysia Derivatives closed at MYR3,044 (MYR3,078), September at MYR3,034 (MYR3,073) and October at MYR3,031 (MYR3,070) a tonne. July contract for soya oil on National Board of Trade in Indore up to Rs 642.50 (Rs 643.60) and August fell to Rs 641.20 (Rs 642.40).

Mumbai commodity exchange spot rate (Rs/10 kg): Groundnut oil 960 (965), soya refined oil 628 (630), sunflower exp. ref. 650 (650), sunflower ref. 690 (690), rapeseed ref. oil 662 (662), rapeseed expeller ref. 632 (632), cotton ref. oil 645 (644) and palmolein 534 (532).

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