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The edible oil market witnessed steady trend taking cue from the firm Malaysian market. Palmolein, soya oil, groundnut oil and sunflower oil ruled unchanged despite crude palm oil (CPO) futures closing higher on Bursa Malaysia Derivatives on Friday. Stockists have covered palmolein in ready and forward markets. Cotton refined oil increased by Rs 2 and rapeseed oil declined by Re 1 for 10 kg. Morale was firm, said wholesalers.
BMD CPO futures closed higher tracking Dalian soya oil and CBOT soya oil futures. Traders covered shorts ahead of the monthly crop report of the US Department of Agriculture and MPOB's March production and stock data. Traders expect Malaysia's March-end stock to reach more than 16 lakh, levels not seen in the last three months.
A wholesaler from the Vashi market said India's NBOT soya futures bounced back marginallyin line with the foreign market. In Saurashtra, arrivals of new groundnut increased to 30,000-35,000 bags. But half of them were of export-quality HPS seeds, leaving little for oil millers. Most mills have stopped crushing groundnut due to shortage of seeds and higher cost of production. On the back of buying by brand makers for the upcoming marriage season, groundnut oil shot up by Rs 40 for 10 kg in Saurashtra. Higher rates of groundnut oil diverted consumer-buying to other oils like cotton oil, palmolein, etc., which also increased sharply. In Rajkot, groundnut oil was steady at Rs 1,240 for telia tin and Rs 825 for 10 kg loose.
Sources said volume was thin in spot in the local market. About 140-150 tonnes palmolein was resale-traded at Rs 558-564. About 1,200-1,300 tonnes of palmolein were sold by refineries in the ready market and for forward delivery. In Mumbai, Liberty was quoting palmolein at Rs 557. Ruchi's rate for palmolein was Rs 557, for soya refined oil Rs 606 and sunflower oil Rs 660. Allana was offering palmolein at Rs 555 for 10 kg. Resalers were quoting palmolein at Rs 558-560.
Malaysia's BMD CPO April contract closed at MYR3,434 (MYR3,375), May at MYR3,400 (MYR3,338) and June at MYR3,399 (MYR3,328) a tonne. Indore NBOT soya oil's April contract was at Rs 617 (Rs 614) and May at Rs 630 (Rs 627).
Mumbai commodity exchange spot rate (Rs/10kg): Groundnut oil 810 (810), soya refined oil 605 (605), sunflower exp. ref. 630 (630), sunflower ref. 675 (675), rapeseed ref. oil 609 (610), rapeseed expeller ref. 579 (580), cotton ref. oil 600 (598) and palmolein was 563 (563).
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