Edible oils pare losses on global cues

| Updated on: Mar 15, 2011
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The sentiment on the edible oils market improved as losses were pared after the Malaysian market closed higher on Tuesday. Crude palm oil (CPO) futures on Bursa Malaysia Derivatives (BMD) rebounded in afternoon trade, rising on speculative buying interest and short-covering. Local refineries have increased the rates for palmolein, as fresh buying improved sharply. In the ready market, volume was thin, but in the forward market for deliveries up to May over 2,500 tonnes of palmolein were traded.

Indore soya futures also witnessed sharp volatility but closed higher.

In Mumbai, fresh retail demand on the spot was absent. About 50-60 tonnes was traded at Rs 558-560 in resale. Traders bet for forward trade and bought more than 2,500 tonnes of palmolein for future delivery. Resalers were quoting Rs 560-562, taking cues from firm foreign markets. Refineries also increased their rates. Liberty was quoting palmolein for Rs 570. Ruchi was quoting palmolein for Rs 557-559, soya refined oil for Rs 605 and sunflower oil for Rs 675. Allana quoted palmolein at Rs 570. In Rajkot, groundnut oil ruled unchanged at Rs 1,145 for telia tin and Rs 745 (Rs 740) for loose 10 kg.

Malaysia's BMD CPO March contracts closed lower at MYR 3,300 (MYR3,375), April at MYR3,428 (MYR3,363) and May MYR3,385 (MYR3,335) a tonne. Indore NBOT soya oil April contracts closed higher at Rs 605.40 (Rs.604.40).

Mumbai commodity exchange spot rates (Rs/10kg): Groundnut oil 740 (745), soya refined oil 595 (597), sunflower exp. ref. 635 (635), sunflower ref. 685 (690), rapeseed ref. oil 617 (610), rapeseed expeller ref. 587 (580), cotton ref. oil 592 (595) and palmolein was 560 (564).

Published on March 15, 2011

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