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The edible oils market ruled steady on Thursday despite a rebound in the futures market. Physical demand remained poor since it its the month-end and stockists prefer to fulfil old commitments. As reports of good rain in Gujarat-Saurashtra came in, groundnut oil was sold at a discounts, resulting in a drop of ₹15 for 10 kg on the Bombay Commodity exchange. Palmolein declined by ₹2 on slack demand. All other edible oils ruled steady. During the day, hardly 150-200 tonnes of palmolein were resold at ₹566-₹567 ex-JNPT. Malaysian palm oil futures, after three days of continuous falls, gained slightly as investors took new long positions. Bear operators booked profit at lower levels. Palm oil futures are nearer to bottom out as a squeeze is expected in palm oil supply in the coming months.
A wholesaler said that while on one side, futures rebounded, on the other, lack of physical demand kept traders/stockists away from fresh bulk buying. From August onwards, demand for edible oils will increase due to festival demand; hence, there is little chance of a sudden drop in prices in the near-term. Currently, supply is sufficient to meet local demand. Progress of monsoon rain in Maharashtra, Madhya Pradesh and Gujarat has improved the prospects of Kharif crop.
At the end of the day, Liberty was quoting palmolein at ₹570 for August 20, Super palmolein at ₹590 for July-August , and soyabean refined oil at ₹642 for August 10. Ruchi was quoting palmolein at ₹568 for August, ₹570 for September. Soyabean refined oil was at ₹638 for August and ₹640 for September. Sunflower refined oil was at ₹640 for August and ₹641 for September. Allana was quoting palmolein at ₹568. In Saurashtra, Groundnut Telia tin declined by ₹20 to ₹1,235 (₹1,255) and Loose (10 kgs) down by ₹10 to ₹790 (₹800).
Malaysia crude palm oil August contracts settled higher at MYR 2,356 (MYR 2,342), September at MYR 2,308 (MYR 2,283) and October at MYR 2,281 (MYR 2,255).
On the Bombay Commodity Exchange, spot rates (₹/10 kg) were: groundnut oil 785(800), soya refined oil 642 (642), sunflower exp. ref. 585 (585), sunflower ref. 645 (645), rapeseed ref. oil 726 (726), rapeseed expeller ref. 696 (696) cottonseed ref. oil 660 (660) and palmolein 568 (570).
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