Absence of local demand gave rise to a bearish trend in the edible oils market on Monday. Weak reports from foreign markets weighed on the sentiment. The Malaysian market closed lower.

In Mumbai, spot palmolein and sunflower oil ruled steady. Soya oil dropped by Rs 2, rapeseed oil by Rs 3 and cotton oil by Rs 2 for 10 kg. Stockists fulfilled old contracts and avoided new buying. Volumes were negligible. Groundnut oil rose by Rs 5 for 10 kg on firm reports from producing centres, mainly Saurashtra in Gujarat where exporters were active buyers for quality HPS groundnuts. With monsoon setting in main producing centres, farmers' demand for seeds for sowing has also increased. Firm trend prevailed in Karnataka, Tamil Nadu and Andhra Pradesh. Brand makers and stockists bought quality groundnut oil.

Crude palm oil (CPO) futures on Bursa Malaysia Derivatives (BMD) closed lower on expectation of Malaysia's palm oil stocks probably reaching 17.5-18 lakh tonnes at the end of May, the highest since January 2010, due to increasing production, said traders. Supplies at the local level are good. In absence of new demand, resellers sold palmolein at Rs 576-577. Liberty quoted palmolein at Rs 582-584. Ruchi's rates were: for palmolein Rs 580, soya refined oil Rs 638 and sunflower oil Rs 695. Malaysia's BMD CPO July contract ended at MYR3,404 (MYR3,448), August at MYR3,388 (MYR3,421), September at MYR3,381 (MYR3,412) a tonne.

Mumbai commodity exchange spot rate (Rs/10 kg): Groundnut oil 875 (870), soya refined oil 639 (640), sunflower exp. ref. 650 (650), sunflower ref. 700 (700), rapeseed ref. oil 667 (670), rapeseed expeller ref. 637 (640), cotton ref. oil 640 (642) and palmolein 578 (578).

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