Imported oils drop on higher stock forecast

Our Correspondent Mumbai | Updated on January 13, 2012 Published on January 13, 2012


Imported palmolein and soya oil extended losses by Rs 5 and Rs 2 for 10 kg for the third consecutive day on Friday, tracking an overseas bearish trend. Malaysian crude palm oil futures fell as market participants booked profits after reports from the US Department of Agriculture forecasted higher-than-expected grain and oilseed stocks. In the last three days, palmolein has dropped by Rs 15 and soya oil by Rs 12.

Indigenous edible oils were mostly unchanged despite absence of demand. as market participants profits

Market sources said arrivals of seeds in Gujarat, Maharashtra and Madhya Pradesh have declined because of Lohri and Makar Sankranti festivals. On Thursday evening, a refiner sold about 1,600-1,700 tonnes of palmolein at Rs 583 for delivery between February 1 and 20. Most mandis in producing centres will be closed on Saturday for Makar Sankranti.

Resellers quoted palmolein at Rs 588-590. Liberty offered palmolein at Rs 593-595 for ready delivery, super palmolein at Rs 620 and sunflower seed refined oil at Rs 730. Ruchi quoted palmolein at Rs 583 for February delivery. Allana quoted palmolein at Rs 583 for delivery between February 5 and 15. In Saurashtra and Rajkot, cotton oil eased to Rs 625-626 and groundnut oil declined by Rs 15 to Rs 1,560 for a telia tin and by Rs 10 to Rs 1,015 for loose (10 kg).

Malaysian crude palm oil's January contracts settled at 3,140 ringgits (3,207 ringgits) and February at 3,160 ringgits (3,220 ringgits) a tonne. Soya oil for January delivery closed at Rs 719.50 (Rs 723.40) and for February delivery sharply declined to Rs 715.50 (Rs 729.50) on the National Board of Trade in Indore.

Bombay Commodity Exchange spot rates (Rs/10 kg): groundnut oil — 1,010 (1010), soya refined oil — 693 (695), sunflower exp. ref. — 650 (650), sunflower ref. — 725 (725), rapeseed ref. oil — 820 (820), rapeseed expeller ref. — 790 (790), cotton ref. oil — 650 (650) and palmolein — 592 (597).

Published on January 13, 2012
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