Commodities

Global cues keep edible oils sluggish

Our Correspondent Mumbai | Updated on September 28, 2011 Published on September 28, 2011

edible

Edible oils witnessed a weak trend on Wednesday, tracking sluggish Malaysian palm oil futures and because of increased pressure of new arrivals in local markets.

Volumes were need-based in absence of demand despite festival days. Groundnut oil lost Rs 10 more and palmolein dipped by Rs 2 while soya oil, sunflower oil and cotton oil remained steady. Rapeseed oil increased by Rs 3 for 10 kg.

Crude palm oil futures (CPO) on Bursa Malaysia Derivatives (BMD)closed lower amid broad commodity declines. Traders said local refiners reduced prices of palmolein and soya oil by Rs 4 following declines in the Malaysian market. Meanwhile absence of demand and arrivals of new crops in producing centres discouraged stockists from making new bets. Resellers sold 90-100 tonnes of palmolein at Rs 547-550 in the physical market. Liberty offered palmolein at Rs 551 and soya oil at Rs 633. Ruchi quoted palmolein at Rs 550 and soya refined oil at Rs 631. Allana offered palmolein at Rs 551 for delivery between October 5 and 15. In Rajkot and Saurashtra, groundnut oil remained unchanged at Rs 1,305 for a telia tin and at Rs 845 for loose (10 kg).

Malaysia's BMD CPO October contracts settled lower at MYR 2,960 (MYR 2,982), November at MYR 2,922 (MYR 2,949) and December at MYR 2,910 (MYR 2,948) a tonne. Soya oil for October delivery closed lower at Rs 634.40 (Rs 640) on National Board of Trade in Indore and at Rs 613.40 (Rs 621.70) for November delivery.

Mumbai commodity exchange spot prices (Rs/10 kg): groundnut oil 890 (900), soya refined oil 632 (632), sunflower exp. ref. 675 (670), sunflower ref. 740 (740), rapeseed ref. oil 687 (684), rapeseed expeller ref. 657 (654), cotton ref. oil 650 (650) and palmolein 550 (552).

Published on September 28, 2011
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