Most of the edible oils extended gain on Monday on initial firm reports from Malaysian market. BMD CPO futures were up in midday but the upside was capped as supply rises while palm oil exports stays low and at the end futures closed lower, affecting the sentiment of physical markets.

In Mumbai market, groundnut oil rose by Rs 5, Soya refined oil Rs 3, Palmolein increase by Rs5, Rapeseed oil by Rs 6 and cotton refined oil gained by Rs 2 for 10 kg. Indore soya oil future declined on expectation of higher arrivals of rapeseed easing pressure on soya. In spot, volume was need based and thin.

Market sources said, Malaysian BMD CPO futures closed 26, 26, 26 ringgits a tonne. Indore soya oil April futures declined by more than Rs 4/ 10 kg, on profit taking and some short-selling by speculators. In local market need based buying kept volume very thin. About 250/ 300 tonnes of palmolein were resale traded in the range of Rs 568 / Rs 570 with stockists.

Direct trade

In direct trade one refinery contracted nearly 750 tonnes of palmolein with other refinery at the rate of Rs 571/ 10 kg. Liberty was quoting palmolein at Rs 572/ Rs 574, Ruchi's rates for palmolein was Rs 572 / Rs 573, soya refined oil Rs 610 and sunflower oil Rs 576 and Allana was offering palmolein at Rs 576 for 10 kg. In indigenous oils, groundnut oil, cotton oil, rapeseed oil, buyers keep away from fresh buying. Resalers were last quoting palmolein Rs 570. In Rajkot market, groundnut oil rose by Rs 5 to Rs 1,185 (Rs 1,180) for Telia tin and Rs 5 to Rs 770 (Rs 765) for loose 10 kg.

BMD CPO futures closed lower on mild buying interest, supply rises and palm oil export decline. Buyers have kept themselves away from fresh buying due to recent price volatility in declining palm oil exports counters on concerns of tight global soya oil supplies, lower planting acreage for US soybeans. Reports of Indonesia may cut its export tax on crude palm oil to 22.5 per cent from 25 per cent in April in line with a decline in international palm oil prices due to lower export demand, sources added.

Malaysia's CPO futures — NBOT futures:

Malaysia's BMD CPO futures April-11 closed at MYR 3473 (3499), May closed at 3447 (3473) and June closed at 3420 (3446) MYR a tone. Indore, NBOT soya oil futures April-11 was at Rs 614 (Rs 618.30) and May Rs 620 (Rs 625).

Mumbai commodity exchange spot rate (Rs 10 kg ):

Groundnut oil Rs 755 (Rs 750), soya refined oil Rs 603 (Rs 600), sunflower exp. ref. Rs 640 (Rs 640), sunflower ref. Rs 680 (Rs 680), rapeseed ref. oil Rs 626 (Rs 620), rapeseed expeller ref. Rs 596 (Rs 590), cotton ref. oil Rs 600 (Rs 598) and palmolein was Rs 572 (Rs 568).

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