Edible oils prices declined sharply on Monday with palmolein dropping below Rs 600-mark, the lowest level since June 19 in Mumbai. According to market sources, the most-awaited data showed that palm oil stocks have risen above 20 lakh tonnes in Malaysia. The Malaysian Palm Oil Board (MPOB) reported a 5.8 per cent increase in August palm oil stocks from a month ago and it weighed on the market sentiment. Sources said that revival of monsoon in India increased selling pressure on indigenous edible oils.
The volume was thin as demand was less than expected. Traders were expecting improved demand during Ganesh festival starting from September 19. In Mumbai market, imported palmolein and soya refined oil dropped by Rs 2 and Rs 5 each fdor 10 kg, tracking lower rates quoted by refineries. Indigenous edible oils, groundnut oil dropped by Rs 30. Sunflower and cotton refined oil declined by Rs 5 each. Rapeseed refined oil eased by Rs 6 on limited demand. A Mumbai-based broker said that need-based local demand kept the volume thin during the day. Local refineries lowered their rates.
Liberty sold about 350-400 tonnes of palmolein at Rs 601-602 and Ruchi 100-150 tonnes palmolein at Rs 601 for forward delivery while in resale about 100 tonnes of palmolein changed hands below Rs 600 level. Towards the end of the day, Liberty quoted palmolein at Rs 603-604. Super palmolein Rs 645, soya oil Rs 775 and sunflower refined oil Rs 795. Ruchi quoted palmolein Rs 601, super palmolein Rs 641, soya refined oil Rs 772 and sunflower refined oil Rs 785-788. Allana’s rate for palmolein was Rs 600. Vaibhavi quoted palmolein at Rs 601. In Saurashtra – Rajkot, groundnut oil ruled steady at Rs 1,880 (Rs 1,880) for
Malaysia's crude palm oil October contracts closed at MYR 2,885 (2,865), November at MYR 2,937 (2,927) and December at MYR 2,978 (2,964) a tonne.
The Bombay Commodity Exchange spot rates were (Rs/10 kg): Groundnut oil 1,200 (1,230), soya ref oil 765 (770), sunflower exp. ref. 735 (740), sunflower ref. 785 (790), rapeseed ref. oil 860 (866), rapeseed exp ref. 830 (836) cotton ref. oil 755 (760) and palmolein 600 (602).