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Imported edible oils continued to decline for the third consecutive day on Thursday, taking cues from bearish foreign markets.
Only Groundnut oil rose by Rs 10 per 10 kg, on increased demand for good quality from brand makers at local level, but at the producing centre – Saurashtra, Rajkot market – steady trend was prevailing.
Malaysia's BMD CPO futures tumbled to a four-month low on Thursday as investors unwind long positions to cut losses due to weak technical factors and as major trading houses offloaded Palmolein in the physical market.
They recovered later partially. In line with bearish Malaysian market in Mumbai, Palmolein decline sharply by Rs 11, Soya refined oil shed Rs 5, cotton refined oil decreased by Rs 7 and sunflower oil by Rs 5 per 10 kg.
Indore soya oil futures also collapsed to a three-month low, below Rs 600 mark on bearish sentiment.
Market sources said Malaysian palm prices fell sharply, as production improved and more oil was available in the market. Soyabean complex also ended weak, as traders booked profits and news of a cut in Indonesia's export tax on crude palm oil sparked a sell off in edible oils. Malaysia BMD CPO futures closed lower by 24, 30 and 36 ringgits a tonne.
In the local market in the absence of demand, volume of trade was very thin and need based. About 150/ 200 tonnes of Palmolein were resale traded in the range of Rs 548-550. At close resalers were quoting Palmolein Rs 552.
Stockiest have covered their requirements. One refinery had offered to buyback but could not get the response from the market. New crop arrivals in groundnut, rapeseed mounted pressure on sentiment. There was no direct trade with local refineries despite the sharp reduction in Palmolein rates.
Liberty was quoting Palmolein at Rs 556, Ruchi's rates for Palmolein were Rs 553, Soya refined oil Rs 600 and Sunflower oil Rs 665 and Allana was offering Palmolein at Rs 555 for 10 kg.
In the Rajkot market Groundnut oil was steady at Rs 1,185 (Rs 1,185) for Telia tin and Rs 770 (Rs 775) for loose 10 kg.
Malaysia's CPO futures - NBOT futures:
Malaysia's BMD CPO futures April-11 closed at MYR 3323 (3347), May-11 at 3298 (3328) and June-11 closed at 3270 (3306) MYR a tone. Indore, NBOT soya oil futures April-11 was at Rs 598 after reaching low of Rs 592 in early trade (Rs 603).
Mumbai commodity exchange spot rate (Rs/10kg):
Groundnut oil 765 (755), Soya refined oil 595 (600), Sunflower exp. ref. 630 (635), Sunflower ref. 675 (680), Rapeseed ref. oil 608 (608), Rapeseed expeller ref. 578 (578), Cotton ref. oil 585 (592) and Palmolein was 555 (566).
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