Extended losses in Malaysian palm oil, as exports this month grew slower than expected, weakened the spot edible oils market. Demand was poor in the domestic market as stockists avoided new buying and took deliveries of old contracts.

Covering by needy stockists lifted volumes compared with Monday in the ready market. Local demand is expected to improve slightly in the new month. In Mumbai, groundnut oil rose by Rs 5 in absence of selling. Soya refined oil and rapeseed oil each declined by Rs 2 for 10 kg, in line with bearish foreign markets. Palmolein and cotton oils lost Rs 3 for 10 kg each.

Crude palm oil (CPO) futures on Bursa Malaysia Derivatives (BMD) extended losses as investors booked profits and soya oil fell a little on the Chicago Board of Trade. A wholesaler said new need-based buying by stockists slightly raised palmolein volumes. Indigenous oils remained weak on thin buying inquiries at the producing level and higher arrivals of seeds. In Mumbai, 400-450 tonnes of palmolein was resold at Rs 580-582 for 10 kg. Liberty was quoting palmolein at Rs 587. Ruchi's rates were: for palmolein Rs 586, for soya refined oil Rs 640 and for sunflower oil Rs 694. Allana's palmolein was at Rs 587. In Saurashtra and Rajkot, groundnut telia tin ruled steady for the third consecutive day at Rs 1,305, and loose quoted at Rs 850 for 10 kg. Local demand was less than expected.

BMD CPO June contracts ended at MYR3,475 (MYR3,519), July at MYR3,434 (MYR3,465) and August at MYR3,393 (MYR3,408) a tonne. Indore NBOT soya oil June contracts were at Rs 659 (Rs 654) and July at Rs 661 (Rs 660).

Mumbai commodity exchange spot rate (Rs/10 kg): Groundnut oil 865 (860), soya refined oil 635 (637), sunflower exp. ref. 645 (645), sunflower ref. 700 (700), rapeseed ref. oil 658 (660), rapeseed expeller ref. 628 (630), cotton ref. oil 637 (640) and palmolein 582 (585).

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