Sentiments remain steady in edible oils market on Wednesday on lack of physical demand despite month beginning and Ganeshotsav festival ahead.
Activities were very thin and in resale. As prices of refineries was Rs 10 – 12 higher, there were no direct volumes with them. Revivals in monsoon in main producing centers and brighten prospects of oilseed crops pulled down groundnut oil and Rapeseed oil by Rs 10 an Rs 5 each. Cotton refined oil and palmolein rule unchanged while sunflower and soyabean refined oil edge up by Rs 5 each. Moral was steady with cautious mood tracking lower closing of Malaysian palm oil futures market.
Malaysian palm oil futures extended lose further by 72, 68 and 64 ringgits a tone and breaks 3,000 marks on Wednesday
on market expectations of a stock build. Total traded volume stood lower than the usual, mirroring investor caution ahead of a European Central Bank meeting on Thursday and slew of global economic data on Friday. Palm oil prices have been
treading lower even though the U.S. soya market hit a record high the previous day, as traders were on the lookout for Malaysian August stocks data due next week said Analyst.
Leading broker said local level absolute lack of demand despite lower rates offered by resellers for palmolein kept activities very limited. Tracking weak Malaysian palm oil market domestic futures market also decline.
On Wednesday about 100 – 150 tonnes of Palmolien was resale traded in the range of 610- Rs 612. Last resale rates were Rs610 – Rs 615 while direct refineries were quoting Rs 7 – Rs 8 higher. Revival of monsoon rains in most producing states has improved the prospects for the Rabi crops but not for Kharif crop which will support the sentiment ahead. he said.
End of the day Liberty was quoting Palmolein at Rs.623-Rs.624 for September. Super palmolein Rs.664, Soya oil Rs.785
up to October and Sunflower refined oil Rs.805. Ruchi quoted palmolein Rs.620, Super Palmolein Rs 660, Soya refined
oil Rs.785 and Sunflower refined oil Rs 795 – Rs 800 for September - October. Allana’s rate for Palmolein was Rs.618 while Vaibhavi quoted palmolein Rs 620. Saurashtra – Rajkot, Groundnut oil rule steady at Rs 1,930 (Rs 1,930) for Telia tin and Rs 1,250 (Rs 1,255) for loose 10 kgs.
On National Board of Trade – Indore, Soya refined oil September -12 futures closed higher at Rs 807.00 (Rs.805.80) and October-12 closed lower at Rs 809.00 (Rs 809.70).
Malaysia's crude palm oil October -12 contracts settled at MYR 2,938 (3,010), November -12 at MYR 2,990 (3,058) and December -12 at MYR 3,033 (3,097) a tonne.
The Bombay Commodity Exchange spot rates were (Rs/10 kg): groundnut oil 1,240 (1,250), soya refined oil 780 (775), sunflower exp. ref. 740 (735), sunflower ref. 795 (795), rapeseed ref. oil 885 (890), rapeseed expeller ref. 855 (860), cotton ref. oil 770 (770) and palmolein 616 (616).