Commodities

Edible oil bubbly on Malaysian market trends

Our Correspondent Mumbai | Updated on May 10, 2011 Published on May 10, 2011

edible

The edible oil market witnessed a firm trend on the back of higher closing of the Malaysian market on the second consecutive day. On Tuesday, tracking Malaysia's positive trends, domestic soya oil future market extended gain. Spot groundnut oil and sunflower oil rose by Rs 5 for 10 kg, palmolein and soya oil increased by Rs 2, cotton oil by Rs 3 and rapeseed oil up by Rs 11. Volume increased on fresh forward buying. Morale was firm.

Mahendra Joshi, oil miller from Talaja – Bhavnagar, said the improving demand outlook for palm oil, raw material used in a wide range of consumer products, supported price rise on the BMD. India sources palm oil from Indonesia and Malaysia and soya oil from Brazil and Argentina. However, rising output palm oil and more offering of soya oil from producing nations, may hamper upward move.

A Mumbai-based leading edible oil broker said that with refineries offering near-by delivery, stockists have started fresh covering. On Tuesday, about 1,200-1,300 tonnes of palmolein were traded for ready and forward. A vessel carrying some 2,000-2,500 tonnes of edible oil is expected in a day or two, to ease the tight supply situation sharply. Resellers were quoting palmolein at Rs 561-562. Liberty's rate for Palmolein was Rs 564, Ruchi's rate Rs 563, Soya refined oil Rs 597-600 and Sunflower oil Rs 665-670. Allana's Palmolein was Rs 567. In Saurashtra – Rajkot Telia tin was steady at Rs 1,255 and loose at Rs 815 for 10 kg loose.

According to oil miller Joshi, the US Department of Agriculture may slightly increase its forecast of soyabean supplies later this week. Indian buyers are expected to strike deals for June shipment. Last week, CPO futures slipped to their lowest levels in five months on Friday, so correction was expected. At domestic level, from third week of May, weather will play a key role in the edible oil market. The cloudy condition prevailing now in some parts indicates timely rain.

Malaysia's CPO futures - NBOT futures:

Malaysia's BMD CPO futures June-11 was MYR 3360 (3334), July-11 closed at 3258 (3238) MYR a tonne. Indore, NBOT soya oil futures May-11 was Rs 615.30 (Rs 613.30), June-11 was Rs 619.30 (Rs 620.50).

Mumbai commodity exchange spot rate (Rs/10kg):

Groundnut oil 835 (830), Soya refined oil 597 (595), Sunflower exp. ref. 620 (615), Sunflower ref. 675 (675), Rapeseed ref. oil 618(607), Rapeseed expeller ref. 588 (577), Cotton ref. oil 598 (595) and Palmolein was 565(563).

Published on May 10, 2011
This article is closed for comments.
Please Email the Editor