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Prices of edible oils weakened during the day tracking weak global markets on Friday. However, the domestic futures markets rebounded late in the evening.
Crude palm oil (CPO) futures on the Bursa Malaysia Derivatives (BMD) fell to a month's low, mirroring a broad selloff across commodity markets. Local refiners reduced prices of palmolein, soya oil and sunflower oil in line with the foreign markets. Volumes remained need-based in the physical market, even though new retail demand ahead of festivals beginning next week was good.
Palmolein dropped by Rs 3, soya oil by Rs 2 and rapeseed oil by Rs 2 for 10 kg in Mumbai. Groundnut oil, sunflower oil and cotton oil ruled steady despite weak reports from producing centres. Resellers traded 150-200 tonnes of palmolein at Rs 554-555 on Friday as demand in the local ready market was need-based after most traders covered requirements in advance. There was talk of a Gujarat-based importer selling a thousand tonnes of palmolein at Rs 550-552 on Friday.
Retail demand is set to increase because of Ramzan, though the wholesale market will toe the foreign line until then, said a Nullbazar-based wholesaler. Liberty' offered palmolein at Rs 559, soya oil at Rs 640 and sunflower oil at Rs 695. Ruchi quoted palmolein at Rs 557, soya refined oil at Rs 636 and sunflower oil at Rs 695. Allana offered palmolein at Rs 560 for delivery in the second half of August. In Rajkot and Saurashtra, groundnut oil declined by Rs 15 to Rs 1,485 for a telia tin and by Rs 10 to Rs 965 for loose (10 kg).
Malaysia's BMD CPO September contract closed at MYR 3,079 (MYR 3,121), October at MYR 3,051 (MYR 3,101) and November at MYR 3,044 (MYR 3,091) a tonne. August contract of soya oil on National Board of Trade in Indore closed at Rs 661 (Rs 662.20) and September at Rs 652 (Rs.657.50).
Mumbai Commodity Exchange spot rates (Rs/10 kg): Groundnut oil 970 (970), soya refined oil 640 (642), sunflower exp. ref. 655 (655), sunflower ref. 705 (705), rapeseed ref. oil 695 (697), rapeseed expeller ref. 665 (667), cotton ref. oil 670 (670) and palmolein 556 (559).
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