Commodities

Profit booking cools down palmolein

Our Correspondent Mumbai | Updated on July 12, 2012 Published on July 12, 2012

BL15_PALM

Most edible oils ruled steady barring palmolein, which extended its loss further by Rs 2 for 10 kg following continuous decline in Malaysia palm oil futures. According to market sources, there were no quantity buyers despite lower offering by domestic refiners.Lower Malaysian palm oil exports and rain forecast over drought-hit US Midwest fuelled some of the declines, as the market had largely priced in lower end-stock in June and strong Asian festival demand for the past few weeks.

Analysts said that all the bullish factors have already been laid on the table, so traders preferred to take profit and decide to stay away. Market observer said that monsoon arrivals in many parts of key oilseeds producing States such as Gujarat, Madhya Pradesh, Maharashtra, Rajasthan and Karnataka boosted sowing. If monsoon progresses well in July, fears of crop loss will ease. Lower closing of Malaysian palm oil and monsoon factor have pulled down the sentiment further. About 100-150 tonnes of palmolein were ready for resale and near-term delivery.

Towards the end of the day, Liberty quoted palmolein at Rs 620-623, super palmolein Rs 657, soya oil Rs 755 and sunflower refined oil Rs 755. Ruchi quoted palmolein at Rs 615 for July and Rs 618-621 for August. Soya refined oil was at Rs 750-755 for July and August. Sunflower refined oil was at Rs 748-753 for July – August respectively. Allana’s rate for palmolein was Rs 617. Mewah’s rate was Rs 622. In Saurashtra-Rajkot, groundnut oil ruled steady at Rs 1,840 for Telia tin and Rs 1,200 for loose - 10kg.

Malaysia's crude palm oil August contracts settled lower at MYR 3,013 (MYR 3,069), September at MYR 3,012 (MRY 3,082) and October at MYR 3,023 (MYR 3,087) a tonne.

On National Board of Trade – Indore, soya refined oil July futures ruled steady at Rs 776 (Rs 776) and August at Rs 786.30 (Rs 790.80).

The Bombay Commodity Exchange spot rates were (Rs/10 kg): groundnut oil 1,180 (1,180), soya refined oil 750 (750), sunflower exp. ref. 700 (700), sunflower ref. 750 (750), rapeseed ref. oil 865 (865), rapeseed expeller ref. 835 (835) cotton ref. oil 720 (720) and palmolein 613 (615).

Published on July 12, 2012
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