Commodities

Edible oils cool on Malaysian cues

Mumbai | Updated on May 12, 2011 Published on May 12, 2011

BL13_COM2_EDOILS

The edible oils market witnessed a weak trend during the afternoon session, tracking a sharp decline in the Malaysian palm oil futures and bearish sentiment in most commodities. Mr Dinesh Thakkar, a wholesaler, said rapeseed oil rose by Rs 10, soya oil by Rs 5 and cotton oil by Rs 5 for 10 kg, tracking firm reports from Malaysia and domestic producing centres. Groundnut oil and sunflower oil ruled steady. Palmolein dropped Rs 3 on selling pressure, as new import arrivals have eased supplies. Local retailers were less active and bought hand-to-mouth, which kept volumes thin. Buying because of shortages evaporated as refineries offered for ready delivery. Buying in indigenous oils was also low despite firm reports from producing centres.

In the North rapeseed arrivals declined to 3-3.25 lakh bags daily, against 4-4.50 lakh bags a week ago. Arrivals of groundnut and cottonseed in Gujarat and soyabean in Madhya Pradesh droopped sharply. Prices weakened despite that as the global markets slipped. Bearish soya report from the US Department of Agriculture has played a key role to arrest palm oil's uptrend.

In Mumbai, in absence of local demand, merely 100-150 tonnes of palmolein were traded for ready delivery at Rs 572-568. Resellers/speculators were offering palmolein at Rs 568, but there were no buyers. Liberty was quoting palmolein at Rs 572. Ruchi's rates for Palmolein were Rs 564, for soya refined oil Rs 603 and for sunflower oil Rs 670. Allanawas offering palmolein at Rs 572.

Crude palm oil contracts on Bursa Malaysia Derivatives for June were MYR 3,310 (MYR3,370) and for July at MYR3,226 (MYR3,269) a tonne. Indore NBOT soya oil June contract was at Rs 619.90 (Rs 622.30).

Mumbai commodity exchange spot rate (Rs/10 kg): Groundnut oil 835 (835), soya refined oil 605 (600), sunflower exp. ref. 620 (620), sunflower ref. 675 (675), rapeseed ref. oil 630 (620), rapeseed expeller ref. 600 (590), cotton ref. oil 605 (600) and palmolein was 572 (575).

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Published on May 12, 2011
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