Edible oil prices witnessed a mixed trend on Wednesday with Palmolein extending a further loss by Rs 1, despite improvement in Malaysian CPO futures. Rapeseed oil declined by Rs 3 per 10 kg. Soya oil rose by Rs 2 as local refineries increased selling rates in line with the firm foreign market. Groundnut oil, sunflower oil and cotton oil ruled steady.

According to traders, the volume was thin. Premium quality oils were in demand. Moral was cautious as initial improvement/firmness was not sustained in the Malaysian market. Malaysian BMD CPO futures rose, reflecting gains in equities and commodities. Supply-demand and higher export data on Wednesday may continue to support the market, as main importers take advantage of falling palm prices to book large shipments during festival months.

Despite festival ahead there was no big improvement in physical market, Mr Santosh Sethia, a broker, said. However, super quality palmolein, soya oil and groundnut oil were in demand. Local demand was need-based. With the improvement in Malaysian and other markets, stockists came forward with fresh buying, but buying was not as expected. In India, festivals starts from Saturday. About 80-100 tonnes of palmolein was traded in the range of Rs 547-548. About 40-50 tonnes of soya oil and 40-50 tonnes of super palmolein was sold directly by refineries. Local refineries increased the rates for palmolein and soya oil by Rs 1-2 in the evening in line with the foreign market.

Malaysia's BMD CPO futures

Malaysia's BMD CPO futures closed higher by 30, 17, 12 ringgits a tonne on Wednesday, tracking higher export for 1-10 August. Malaysia's palm oil exports in the first 10 days of August rose 53 per cent from a month earlier to 608,236 metric tonnes, cargo surveyor SGS (Malaysia) Bhd, said on Wednesday. SGS estimated exports at 398,280 tonnes in the July 1-10 period. China's July soyabean imports rose 8 per cent from a year ago to 53.5 lakh tonnes, while edible oil imports rose 13 per cent from a year ago to 7 lakh tonnes, the General Administration of Customs, said on Wednesday.

In domestic market at the end of the day, resalers were offering palmolein at Rs 550. Liberty's rates for Palmolein was Rs 553, soya oil Rs 631, sunflower oil Rs 695. Ruchi was quoting palmolein at Rs 551, soya refined oil Rs 630 and sunflower oil Rs 695. Allana's palmolein was Rs.552 for 20-31 August delivery. In Rajkot-Saurashtra, groundnut oil extended loss by Rs 10-1,445 (Rs 1,455) for Telia tin and loose - 10kg declined by Rs 10-935 (Rs 945) in the absence of demand.

Malaysia's CPO futures - NBOT futures:

Malaysia's BMD CPO futures, September-11 closed at 3,000 (2970), October-11, 2,937 (2,920) and November-11, 2,907 (2,895) MYR a tonne. Indore, NBOT soya oil August-11, futures closed higher at Rs 660.00 (Rs 656.00) and September-11, Rs 648.00 (Rs 645.00).

Bombay Commodity Exchange spot rate (Rs/10kgs):

Groundnut oil 965 (965), soya refined oil 632 (630), sunflower exp. ref. 650 (650), sunflower ref. 700 (695), rapeseed ref. oil 682 (685), rapeseed expeller ref. 652 (655), cotton ref. oil 660 (660) and palmolein was 549 (550).

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