Fear of poor rain looms over edible oils

Our Correspondent Mumbai | Updated on July 04, 2011


Imported palmolein and soya oil ruled weak on Monday, tracking the arrested upside move in Malaysian palm oil market.

Among indigenous oils, groundnut, rapeseed and cotton oils increased on concern over poor rain, which is very crucial for the ongoing kharif sowing. Soyabean oil lost Re 1. Palmolein and sunflower oil were unchanged.

Groundnut oil, along with cotton oil, shot up by Rs 10. Rapeseed oil increased by Rs 2. The volume in spot was negligible as majority traders preferred to keep tracking bearish future market.

30 for 10 kg loose.

Crude palm oil futures (CPO) on Bursa Malaysia Derivatives (BMD) rebounded from a low last hit in October last year in the previous session on Monday as firm crude prices supported, although investors expect further weakness due to a higher output cycle in the second half.

Liberty was quoting palmolein at Rs 536-537. Ruchi's rate for palmolein was Rs 532, for soya refined oil Rs 627 and for sunflower oil Rs 683. Allana's palmolein was Rs 535.

Malaysia's BMD CPO August contract closed at MYR3,070 (MYR3,052), September closed at MYR3,054 (MYR3,036) and October MYR3,054 (MYR3,034) a tonne. The July contract of soya oil on National Board of Trade in Indore was down to Rs 638.30 (Rs 641) and August was Rs 638.50 (Rs 643).

Spot rates on Mumbai commodity exchange spot rate (in Rs for 10 kg) were as follows: for groundnut oil was 945 (935), for soya refined oil was 627 (628) and for sunflower exp. ref. was 645 (645). For others (in Rs for 10 kg), it were sunflower ref. 690 (690), rapeseed ref. oil 662 (660), rapeseed expeller ref. 632 (630), cotton ref. oil 642 (640) and palmolein 535 (535).

Published on July 04, 2011

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