Edible oil prices dropped sharply on Monday on selling pressure and liquidation on bearish activities. Groundnut oil dropped by Rs 10 for 10 kg. Palmolein and soya-refined oil declined by Rs 4 and Rs 2 respectively despite higher Malaysian crude palm oil futures' closing.

Expected higher arrivals and absence of fresh demand kept sunflower oil, rapeseed oil and cotton oil under check with a fall of Rs 5, Rs 7 and Rs 2 respectively. The Volume was need-based and low. Trade was chiefly in resale. The undertone was weak, said market sources.

Meanwhile the India Meteorological Department (IMD) is scheduled to unveil its long-range forecast for 2011 southwest monsoon on Tuesday. The two-stage forecast is made in April and June. For the whole (June-September) season, forecast is made in first stage.

Crude palm oil futures closed slightly higher in choppy trade, rising on short covering after recent declines. The upside is likely limited due to ongoing weakness in other commodities.

Indore NBOT soya futures contracts declined sharply, tracking bearish agriculture markets.

Market sources said Malaysia crude palm oil futures closed higher on mild buying interest and renewed optimism about export demand in the second half, as the number of ships lining up is slightly higher compared with that in the first half of April. At the Mumbai market, absence of fresh demand and selling pressure of resalers kept the volume low. About 250-300 tonnes palmolein was traded in resale at Rs 554. Liberty's rate for palmolein was Rs 558, Ruchi was quoting Rs 552, soya-refined oil Rs 590 and sunflower oil Rs 652.

Allana's palmolein was Rs 553.

Buying interest in indigenous oil was nil as stockists sought to fulfil pending commitments. Expected higher arrivals of soyabean, rapeseed and groundnut kept the sentiment bearish.

At Rajkot, groundnut oil ruled weak at Rs 1,230 for telia Tin and Rs 795 for 10 kg “loose.” Crude palm oil futures closed higher by 10, 24 ringgit a tonne.

Malaysia's CPO futures - NBOT futures:

Malaysia's crude palm oil futures May-11 was MYR 3,299 (3,289), June–11 closed at 3,260 (3,235) MYR a tonne. Indore, NBOT soya oil futures May–11 was Rs 607.30 (Rs.611).

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

Groundnut oil 810 (820), soya-refined oil 590 (592), sunflower exp. ref. 620 (625), sunflower ref. 665 (665), rapeseed ref. oil 595 (602), rapeseed expeller ref. 565 (572), cotton ref. oil 588 (590) and palmolein was 558 (562).

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