Commodities

Poor local demand depress imported oils

Our Correspondent Mumbai | Updated on July 28, 2011 Published on July 28, 2011

edible oil

Imported edible oils fell in the domestic market on Thursday in absence of local demand and tracking a weak trend in the Malaysian market. Crude palm oil (CPO) futures on Bursa Malaysia Derivatives (BMD) slipped on Thursday as investors booked profits. In Mumbai, soya refined oil dropped by Rs 5, palmolein by Rs 2 and rapeseed oil by Rs 5 for 10 kg each. Groundnut oil, sunflower oil and cotton oil remained unchanged. Volumes were need-based and resellers bought some new stocks at the lower rate. Traders preferred to take delivery of old contracts for indigenous oils, they said.

Market sources said local refiners reduced rates for palmolein and soya oil on a weak Malaysian market. Local demand was low because of month-end. Out of the 700-800 tonnes of palmolein that changed hands on Thursady, 400-500 tonnes were sold directly by refiners at Rs 553-555 and 250-300 tonnes was traded by resellers at Rs 551-553. Liberty offered palmolein at Rs 556, soya oil at Rs 641 and sunflower oil at Rs 695. Ruchi quoted palmolein at Rs 555, soya refined oil at Rs 639 and sunflower oil at Rs 695. Allana offered palmolein at Rs 556. In Rajkot and Saurashtra, a telia tin of groundnut oil was down Rs 15 to Rs 1,485 and loose (10 kg) remained unchanged at Rs 970.

Malaysia's BMD CPO August contract closed MYR3,125 (MYR3,130), September at MYR3,122 (MYR3,133) and October at MYR3,116 (MYR3,130) a tonne. August contract of soya oil on National Board of Trade in Indore closed higher at Rs 663.90 (Rs 661.60) and September fell to Rs 657 (Rs 659.50).

Mumbai Commodity Exchange spot rates (Rs/10 kg): Groundnut oil 970 (970), soya refined oil 640 (645), sunflower exp. ref. 655 (655), sunflower ref. 705 (705), rapeseed ref. oil 693 (698), rapeseed expeller ref. 663 (668), cotton ref. oil 666 (666) and palmolein 553 (555).

Published on July 28, 2011
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