Edible oil rule weak

Edible oil prices rule slightly weak on Tuesday tracking weak global market previous day.

The Bombay Commodity Exchange was closed on account of Maharashtra Day.

While Malaysian palm oil market was also closed for holiday. Hence, the presence of traders was thin in market with no fresh activities.

Stockist also closed shutters as there were no loading – unloading of the materials. On expectation of improvement in local demand under current remain steady. Price will take lead from how demands improve, said traders.

Analyst said Malaysian palm oil market was closed for a holiday. Malaysian BMD CPO futures ended lower on Monday as slower US growth raised fears of a weaker global economic outlook, although losses were limited by strong export numbers and tight global oilseed supply.

US economic growth cooled in the first quarter, dampening investor sentiment, but also raising expectations that the Federal Reserve may start another round of monetary easing.

Sources said Malaysian palm oil exports jumped close to 10 per cent from a month earlier, but it was not enough to lift futures. At domestic level continues weakness in Indian rupee against US dollar makes import parity – cost higher. Currency factor currently dominate on local prices despite poor demand.

Refiners were forced to raise the price of imported oils while resellers offering lower rates to book profits of recently rally. Hence, the volumes in physical market become very thin. Now with the start of the new month, demand is expected to improve.

In the absence of any cue and presence of traders – broker isolated volume took place in palmolein in resale, he said.

Previous day evening Liberty quoted palmolein at Rs 666–667, soyabean refined oil Rs 740 and sunflower refined oil Rs745. Ruchi quoted palmolein at Rs 660, soya refined oil at Rs 733 and sunflower refined oil at Rs 738. Allana's rate for Palmolein was Rs 666. Bunge quoted palmolein Rs.665 for 1-20 May. Resalers were offering palmolein at Rs 658- 659. Saurashtra – Rajkot groundnut oil was Rs 1,985 (Rs 1,970) for Telia tin and Rs 1,300 (Rs 1,290) for loose – 10 kg.

On Monday, Malaysia's crude palm oil May contracts settled lower at MYR 3,472 (MYR 3,486), June at MYR 3,474 (MYR 3,509) and July at MYR 3,471 (MYR 3,505) a tone. Tracking weak foreign market On National Board of Trade – Indore, Soya refined oil futures rule weak on Tuesday. A May-12 soya oil futures decline to Rs 773 (Rs 775) and June-12 was Rs 782.50 (Rs 783.50).

In Mumbai market, nominal rates were (Rs / 10 kg): groundnut oil was 1,260 (1,255), soya refined oil 728 (730), sunflower exp. ref. 670 (670), sunflower ref. 740 (740), rapeseed ref. oil 815 (820), rapeseed expeller ref. 785 (790) cotton ref. oil 702 (704) and palmolein 659 (660).