Crude palm oil plunges to year's low

Our Correspondent Mumbai | Updated on August 08, 2011


Most edible oils prices extended losses in line with weak global markets on Monday. Crude palm oil (CPO) futures on Bursa Malaysia Derivatives (BMD) plunged to hit a new low for the year, following a broad selloff across markets after Standard & Poor's downgraded the credit rating of the US.

Palmolein dropped by Rs 2, soya oil by Re 1, rapeseed oil by Rs 6 and cotton oil by Rs 2 for 10 kg in the domestic market. Groundnut oil rose by Rs 5 and sunflower oil remained unchanged.

Volumes were thin in the physical market as stockists avoided new buying. Local demand was need-based. Resellers sold only 80-100 tonnes of palmolein in ready market at Rs 553-554. Local refiners quoted higher prices for earlier deliveries.

Liberty offered palmolein at Rs 558, soya oil at Rs 638 and sunflower oil at Rs 695. Ruchi quoted palmolein at Rs 554, soya refined oil at Rs 634 and sunflower oil at Rs 694. Allana offered palmolein at Rs 558. In Rajkot and Saurashtra, groundnut oil remained unchanged at Rs 1,465 for a telia tin and at Rs 955 for loose (10 kg).

Malaysia's BMD CPO September closed at MYR3,036 (MYR3,079), October at MYR2,994 (MYR3,051) and November at MYR2,980 (MYR3,044) a tonne. August contract of soya oil dropped to at Rs 658 (Rs 658.70) and September declined to Rs 646.70 (Rs 647.80).

Mumbai Commodity Exchange spot prices (Rs/10 kg): Groundnut oil 970 (965), soya refined oil 634 (635), sunflower exp. ref. 655 (655), sunflower ref. 700 (700), rapeseed ref. oil 684 (690), rapeseed expeller ref. 654 (662), cotton ref. oil 663 (665) and palmolein 554 (556).

Published on August 08, 2011

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