Palmolein declined by Rs.3 and Rapeseed oil drop by Rs.8 per 10 kgs., in edible oils market on Thursday, tracking bearish futures market and absence of demand in physical market. Other oils like Groundnut oil, Sunflower oil, Soya oil and Cotton oil rule steady but tone was weak. Market sentiment further weakened after lower closing of Malaysian market. Volume was almost nil as resalers continue sell at lower price. Lingering more and more new arrival of edible oil from abroad, will add more pressures on already lying large stocks in Indian ports said market sources.

Malaysia’s BMD CPO futures slip on profit-taking due to slower Malaysia palm oil export growth and weaker soyaoil. Worries about U.S. soybean crop have already been priced into the market, said a commodities analyst.

According to traders, activities were like stand still on second consecutive day as there was no demand despite Ganeshotsav festival knocking the door. Local refineries have kept rates steady for Palmolein, soya oil and sunflower. Resellers were under pressure to sell their outstanding purchases as due date for that comes nearer. Prices difference between resalers and importers widen due to lack of demand. With the lower closing of Malaysian Palm oil and in line decline in domestic Soya oil futures sentiment for fresh bet vanished in physical market.

In local market talk of Indonesian government may reduce Palm oil export tax to 7.50 % from 1st October -11 have weighed on sentiment as it will lead to stiff competition with Malaysia. Palm oil is already facing stiff competitions from rival Soya oil. Indonesia has decided to keep its palm oil export tax for September unchanged from August at 15%, they said.

So far domestic supply – demand concern there is more than sufficient stocks of imported oils already lying in the different ports of the India and steamers carrying edible oils are continuously arriving. So there will be plenty of supply despite the higher demand during the celebration of Ganeshotsav festival starts from next week. In the bearish mood stockiest keep away from fresh buying and preferred to take deliveries of old contracts said traders.

Towards the day's close, resalers were eager to sell palmolein at Rs.553-Rs.554. Liberty’s rates for Palmolein was Rs.562, Soya oil Rs.641, sunflower oil Rs.700. Ruchi was quoting Palmolein was Rs.560, Soya refined oil Rs.639 and Sunflower oil Rs.700. Allana’s Palmolein was Rs.560 for 10-20 and 20-30 September. Palmolein for October delivery was quoted by refineries at Rs.557 – Rs.559. In Rajkot – Saurashtra, groundnut oil rule steady Rs.1500 (Rs.1500) for Telia tin and loose - 10kg, was at Rs.980 (Rs.980). Malaysian BMD Crude palm oil futures closed lower by 22, 40 and 42 ringgits a tone.

Malaysia’s CPO futures - NBOT futures:

Malaysia’s BMD CPO futures, September-11 closed at 3108 (3130), October-11, 3030 (3070) and November-11, 2994 (3036) MYR a tone. Indore, NBOT soya oil September -11, futures decline to Rs.658.00 (Rs.662.00) and October-11, closed at Rs.645.00 (Rs.649.70).

Bombay Commodity Exchange spot rate (Rs/10kgs):

Groundnut oil 970 (970), Soya refined oil 638 (638), Sunflower exp. ref. 660 (660), Sunflower ref. 705 (705), Rapeseed ref. oil 685 (693), Rapeseed expeller ref. 655 (663), Cotton ref. oil 655 (655) and Palmolein was 557 (560).

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