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The Mumbai edible oil market ruled steady on Monday due to less-than-expected demand and despite the firm report from the Malaysia's higher closing. Poor local demand and expectation of steps by the Government to contain higher food inflation kept volumes at a bare minimum. Groundnut oil, Palmolein and sunflower oil and cotton oil prices ruled steady. Soya refined oil rose marginally by Rs 2. Rapeseed oil declined by Rs 7 per 10 kg. Indore NBOT Soya futures closed higher by Rs 4 taking cues from the Malaysian market, which closed higher ahead of the Chinese New Year starting next week.
Malaysian futures
Malaysian crude palm oil futures closed marginally higher as unfavourable harvesting weather persists. Malaysian and Indonesian production are expected to be very weak, so the expectation of palm oil too remains on an uptrend, a section of the traders said. Some are of the view that the market may see some squaring off of positions ahead of the Lunar New Year holiday. Crude palm oil prices may fall in the short term on concern that unrest in Egypt may weaken import demand and prompt traders to liquidate their speculative positions.
According to market sources, in Palmolein, only about 80-100 tonnes were resale traded in the Rs 585-588 range. Less than expected retail demand and higher quotation by refineries kept volumes thin.
Liberty was quoting Palmolein at Rs 607/610. Ruchi's rates were Rs 600 for Palmolein, Rs 630 for soya refined oil and Rs 715 for sunflower refined oil. In the Saurashtra-Rajkot market, groundnut oil was Rs 1,135 (Rs 1,130) for telia tin and Rs 735 (Rs 730) for 10 kg.
Arrival figures
Total arrivals of groundnuts in Gujarat, Rajasthan, Andhra Pradesh and Karnataka were 1.45/1.50 lakh bags. Soya bean arrivals in Indore, Madhya Pradesh were about 1.50 lakh bags. There was no demand for other indigenous oils. Brand makers are also keeping away from fresh buying.
Malaysia's crude palm oil futures February-10 closed at Malaysian ringgit (MYR) 3,840 (3766), March-11 was at MYR 3,832 (3,743) MYR. Indore NBOT soya oil futures February-11 was Rs 655.10 (Rs 651.20) and March-11, Rs 665 (Rs 661).
Mumbai commodity exchange spot rate (Rs/10 kg): Groundnut oil 760 (760), soya refined oil 627 (625), sunflower exp. ref. 675 (675), sunflower ref. 730 (730), rapeseed ref. oil 645 (652), rapeseed expeller ref. 615 (622), cotton ref. oil 613 (613) and Palmolein, 585 (585).
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