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Imported oils, palmolein and soya refined oil, along with cotton and rapeseed oil, continued to decline on Tuesday, taking cues from the sharp collapse in Malaysian BMD CPO, Dalian soyabean and CBOT soya oil futures.
On Monday, despite higher closing of Malaysian market, local prices declined. On Tuesday, Palmolein declined further by Rs 4, soya refined oil and cotton refined oil dropped by Rs 3 each. Rapeseed oil lost Rs 16 per 10 kg. With hand-to-mouth trade volume, sentiment was weak ahead of mostly bearish outcome expected, near term, from the Palm oil conference at Kuala Lumpur.
Market sources said that with limited and need-based physical buying and sluggish position in Indore NBOT soya oil futures based on weak foreign market, trade volume had almost become stagnant. Refineries were quoting palmolein and soya refined oil in line with the market sentiment but no one was willing to bet for fresh buying as resellers quoted lower rates. Needy retailers concentrate on resale buying as it is cheaper than refineries.
On Tuesday, hardly 50/60 tonnes of palmolein was traded in resale at the rate of Rs 578 per 10 kg. Bearish soya futures affected the spot market keeping stockists away from bulk buying. In Groundnut oil, cotton, rapeseed, and soya refined oil, selling pressure from producing centres kept volume almost zero.
BMD CPO futures closed sharply lower, mostly tracking crude, Dalian soybeans as well as CBOT soya oil. Trading volumes remain thin, as most traders are away at Malaysia's Palm Oil Conference and Price Outlook, which convened in Kuala Lumpur on Monday. Palm oil output in Malaysia and Indonesia, the world's top two suppliers, will hit 407 lakh tonnes in 2011 as yields are expected to improve on the back of favourable weather, said traders.
In Mumbai, refineries have reduced the rate of oils. Liberty quoted palmolein Rs 585. Ruchi's rates for palmolein was Rs 585, soya refined oil Rs 620 and sunflower oil Rs 695. Allana's rates of palmolein was Rs 585. Dhulia line producers were quoting cotton refined oil Rs 605. In Rajkot market, groundnut oil ruled steady at Rs 1,155 (Rs 1,155) for Telia tin and Rs 745 (Rs 745) for loose 10 kg.
February data on Malaysia's palm oil production, stocks and exports is awaited next week from the Malaysian Palm Oil Board. Some traders estimate Malaysia's end-month palm oil inventories will likely fall to 13.5-13.9 lakh tonnes, their lowest level in seven months. Malaysia's BMD CPO futures closed 100, 107 and 111 ringgits a tonne. Indore NBOT soya futures lost more than Rs 10.
Malaysia's CPO futures - NBOT futures
Malaysia's BMD CPO futures March-11 closed lower at MYR 3650 (3750), April -11 at 3623 (3730), May ? 11 at 3584 (3695) MYR a tonne. Indore, NBOT soya oil futures March-11 futures closed at Rs 620.00 (Rs 630.40) and April ? 11 was Rs 630.00 (Rs 642.00).
Mumbai commodity exchange spot rate (Rs/10kg)
Groundnut oil 750 (750), Soya refined oil 615 (618), Sunflower exp. ref. 655 (655), Sunflower ref. 705 (705), Rapeseed ref. oil 620 (636), Rapeseed expeller ref. 590 (606), Cotton ref. oil 608 (611) and Palmolein was 582 (586).
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