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In edible oils and oilseed market on Tuesday, Palmolein extended gain for fifth consecutive day by another Rs 2 for 10 kg on tight supply position at local level and tracking higher closing of Crude palm oil futures on Malaysia's derivatives exchange.
Soya oil futures declined in line with CBOT market and higher arrivals in producing centres. Indore soya oil futures dropped by Rs 4-5.
In the last two weeks Malaysian CPO futures increase by 96 ringgits a tonne but due to lack of availability of Palm oil in ready, Mumbai market witnessed jump of Rs 35 for 10 kg. Other oils ruled steady.
A oil miller from Sihor - Bhavnagar told Business Line : “In Palmolein, spread between spot and forward contracts widened due to supply crunch. New arrivals of vessels are expected after 10th of May. Quantity is also very little. About 12,500-13,000 tonnes of oils are expected to land. If domestic demand picks up, then price rise cannot be ignored.”
Indigenous oils such as groundnut, rapeseed, soya and cottonoil are under pressure due to absence of demand and high arrivals. In Saurashtra – Rajkot, exporters demand for good quality HPS groundnut supported the physical edible oil market. Groundnut oil Telia tin rose by Rs 10 to Rs 1,280 and loose 10 kg to Rs 835.
A Vashi-market based wholesaler said that Palmolein is extending gains only because of tight supply position in spot. Refineries are quoting for forward delivery. Currently resalers are only source of ready supply for which only needy buyers are betting. Bullish sentiment will continue to till supply become sufficient. In Mumbai market, buyers bought about 70/80 tonnes in the range of Rs 576-580 in resale.
Malaysia's CPO futures & NBOT futures: June -11 was MYR 3312 (3300), July – 11 closed at 3271 (3270) MYR a tonne. Indore, NBOT soya oil futures May – 11 declined to Rs 615.70 (Rs 619.50), June -11 was Rs 624.70 (Rs 629.50).
Mumbai commodity exchange spot rate (Rs/10kg): Groundnut oil 840 (840), Soya refined oil 607 (607), Sunflower expeller refined 630 (635), Sunflower refined 680 (685), Rapeseed refined oil 618 (630), Rapeseed expeller refined 589 (590), Cotton refined oil 595 (595) and Palmolein was 580(578).
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