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The edible oil market witnessed a mixed trend during the day on Wednesday. Palmolein drop by Rs 4 for 10 kg, tracking bearish move in the Malaysian palm oil market. Other oils rule steady. Malaysian BMD palm oil futures fell Wednesday, as traders booked profits due to renewed concerns about month-end inventory levels and good production prospects. In the domestic market, less-than-expected local demand kept the moral weak. Refineries reduced Palmolein rates in the evening, tracking bearish foreign market. Malaysian BMD CPO July and August futures closed lower by 34, 33 ringgits a tonne.
Stockists preferred to take delivery of old contracts and kept away from fresh buying. Traders expect retailers' demand to rise with the beginning of month. The moral was weak as supply position is now very easy and smooth. In the Mumbai market, groundnut, sunflower and rapeseed oil ruled steady. While soya oil rose by Rs 2 and cotton oil increase by Rs 1, BMD CPO futures closed lower with investors booking profits after prices failed to stay above the psychological level of MYR 3,400/tonne. A sluggish trade in the ready market is pressuring prices lower. Trade is likely to remain “mixed and volatile” for the day or two as the market seeks fresh leads, said a commodity analyst.
With stockists' need-based buying, Palmolein continues to witness a slight increase in volume, a wholesaler said. Drop in Malaysia and expectation of timely monsoon in India kept the moral weak and inventory buying sentiment at bay. In indigenous oils, lack of demand and selling pressure kept the moral steady. Stockists have bought about 250- 300 tonnes of Palmolein in resale in the Rs 575-578 range. There was talk of about 500 tonnes of Palmolein changing hands at Rs 571.
Total volume
Total volume was estimated at 750-800 tonnes in Palmolein. Liberty was last quoting Palmolein at Rs 582, Ruchi's rate for Palmolein at Rs 578, soya refined oil at Rs 640 and sunflower oil at Rs 695. Allana's Palmolein was Rs 576. In Saurashtra, Rajkot groundnut telia tin ruled steady at Rs 1,305 and loose Rs 845 for 10 kg.
Malaysia's CPO futures - NBOT futures:
Malaysia's BMD CPO futures, June -11 was MYR 3,435 (3,475), July – 11 closed at 3,400 (3,434), August-11 closed at 3,360 (3,393) MYR a tonne. Indore, NBOT soya oil June-11 futures closed at Rs 652.10 (Rs 659) and July-11 was Rs 654.80 (Rs 661).
Mumbai commodity exchange spot rate (Rs/10kg):
Groundnut oil 865 (865), soya refined oil 637 (635), Sunflower exp. ref. 645 (645), sunflower ref. 700 (700), rapeseed ref. oil 658 (658), rapeseed expeller ref. 628 (628), Cotton ref. oil 638 (637) and Palmolein was 578 (582).
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