Commodities

Groundnut, cotton oils gain on poor seed arrivals

Our Correspondent Mumbai | Updated on May 17, 2011

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Gains in imported palmolein and soya oils were arrested on Tuesday, as the Malaysian market remained closed for holiday. Few bought palmolein in resale. However, firm trend was witnessed in indigenous groundnut, rapeseed and cotton oils. In absence of new demand, volume of trade was negligible.

Groundnut and cotton oils gained Rs 5 and rapeseed oil Rs 2 for 10 kg on firm report from producing centres. Declined arrivals of seeds, like groundnut, soyabean and rapeseed, weighed on the market sentiment. New demand is expected to pick up soon. On the other hand, monsoon is also predicted on time. These opposing factors have kept the market cautious and volumes low.

Market sources said traders expect Malaysian palm oil futures to extend their gain on renewed demand, following bullish export data released by two cargo surveyors for May 1-15. On Monday, crude palm oil (CPO) futures closed higher. Volumes remained low in Mumbai as there were hardly any players. Refineries have started offering ready/weekly delivery. Supplies have improved. Stockists were reluctant to make any new commitments in the absence of local demand. On Tuesday, hardly 50-60 tonnes of palmolein was traded in resale at Rs 572-573. Refineries did not change their prices. There was hardly any response. Liberty was quoting palmolein at Rs 574. Ruchi's rate were: for palmolein Rs 573, for soya refined oil Rs 610 and for sunflower oil Rs 670. Allana's palmolein was at Rs 576. In Saurashtra and Rajkot, groundnut telia tin was up by Rs 10 to Rs 1,295 and loose rose by Rs 10 to Rs 845 for 10 kg, sources added.

Indore NBOT soya oil June contract closed at Rs 633.50 (Rs 634.50).

Mumbai commodity exchange spot rate (Rs/10 kg): Groundnut oil 850 (845), soya refined oil 610 (610), sunflower exp. ref. 625 (625), sunflower ref. 675 (675), rapeseed ref. oil 640(638), rapeseed expeller ref. 610 (608), cotton ref. oil 620 (615) and palmolein 575 (575).

Published on May 17, 2011

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