Edible oils ruled weak on Wednesday in the absence of demand. They also took cues from the bearish foreign market. Palmolein and soya refined oil ruled steady despite Malaysian crude palm oil (CPO) continuing to rule lower.
Refineries quoted only for forward delivery. In hajir (spot), resellers kept away from offering. Lack of fresh demand kept the sentiment dull and the volume was almost zero. In indigenous oils also, buyers kept away from fresh commitments.
Crude palm oil futures on Malaysia's derivatives exchange on Wednesday, slipped to their lowest levels in a week on bearish fundamentals and weak Chicago and Dalian soya futures. In Mumbai market, groundnut oil after witnessing a jump of Rs 40 in last one week, dropped Rs 10. In Saurashtra, groundnut oil came down by Rs 20 to Rs 1,275 (Rs 1,295) for
Analysts said that the fall in CPO futures is likely to extend further, as investors have gone short amid weakness in global vegetable oil market and rising palm oil production in South-East Asia. Traders may continue to go short on CPO and other oilseeds. In the absence of fresh demand due to vacation, trading volume was thin. Merely 30-40 tonnes of palmolein were traded in resale in the range of Rs 564-565. Liberty's quoted palmolein at Rs 560, Ruchi at Rs 558, while it quoted soya refined oil at Rs 605 and sunflower oil Rs 670. Allana's quote for palmolein was Rs 560.
Malaysia's CPO futures - NBOT futures: Malaysia's BMD CPO June contracts ended at MYR 3,305 (3,355) and June at MYR 3,277 (3330) a tonne. Indore NBOT soya oil May contracts closed at Rs 615.10 (Rs 619.80) and June at Rs 629 (Rs 629.80).
Mumbai commodity exchange spot rate (Rs/10kg): Groundnut oil 840 (850), soya refined oil 605 (605), sunflower expeller refined 630 (630), sunflower refined 675 (680), rapeseed refined oil 608 (615), rapeseed expeller refined 578 (585), cotton refined oil 593 (598) and palmolein 567 (567).