Palmolein dips on weak global cues

Our Correspondent Mumbai | Updated on March 16, 2011

edible oil

Edible oils witnessed a mixed trend on Wednesday. Palmolein continued to slip on a weak Malaysian market, soya futures at Indore NBOT bounced back and the decline of soya oil was arrested in spot and futures. Sunflower oil eased Rs 5, rapeseed oil dipped Rs 9, cotton oil declined Rs 4 and palmolein lost Rs 4 for 10 kg. Groundnut and soya oils ruled steady. Reports that China's soybean acreage may fall 11 per cent this year also supported soya and related commodities.

Most traders have liquidated their positions and are waiting for the crisis in Japan to unfold. New reports about radiation from the damaged nuclear power plants pressed palm oil as speculators sold in the market, sources said.

In the local market, about 250-300 tonnes of palmolein was traded in resale on need-based buying at Rs 552-555. Direct trade with refineries was absent as resale was cheaper. Buying to build up stocks has stopped after more than 2,500 tonnes of palmolein was bought directly from refineries on Tuesday. Higher arrivals of seeds and anticipation of even higher arrivals after Holi checked volumes and new demand of indigenous oils. In Mumbai, resalers quoted palmolein for Rs 554-555, taking cues from firm foreign markets. At the refinery level, Liberty increased the rates by Rs 2 to Rs Rs 560-562 for palmolein, and eventually stopped quoting. Ruchi's rates for palmolein were Rs 557-559, for soya refined oil Rs 605 and sunflower oil Rs 675.Allana quoted palmolein at Rs 559. In Rajkot, groundnut oil gained by Rs 10 to Rs 1,155 (Rs 1,145) for telia tin and Rs 745 (Rs 745) for loose 10 kg. Malaysia's CPO futures - NBOT futures:

Malaysia's BMD CPO contracts for April closed lower by MYR28 at MYR3,400 (MYR3,428), for May at MYR3,368 (MYR3,385) and for June at MYR3,347 (MYR3,379) a tonne. Indore NBOT soya oil's April contract closed higher at Rs 605.50 (Rs 605.40).

Mumbai commodity exchange spot rates (Rs/10kg): Groundnut oil 740 (740), soya refined oil 595 (595), sunflower exp. ref. 635 (635), sunflower ref. 680 (685), rapeseed ref. oil 608 (617), rapeseed expeller ref. 578 (587), cotton ref. oil 588 (592) and palmolein was 556 (560).

Published on March 16, 2011

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