Commodities

Mixed trend in edible oils

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

groundnut

Edible oil market witnessed a mixed trend on Friday despite a rebound in Malaysian palm oil futures. Groundnut oil and cotton refined oil rose by Rs 5 and Rs 2 for 10 kg each, tracking firm reports from producing centres. Soya oil and rapeseed oil declined Rs 3 and Rs 5 each. Sunflower oil and palmolein rule steady.

Local refineries have reduced rate for palmolein for near delivery but failed to attract fresh bulk buying.

Sources said that the absence of sufficient rain in main producing States of Maharashtra, Madhya Pradesh and slow progress of rain in Gujarat, Rajasthan have increased worry over oilseeds output.

Indigenous oils got fresh buying support ahead of festivals in producing centres, especially in Gujarat. According to market sources, there were no quantity buyers but needy stockists covered about 600–700 tonnes of palmolein for nearby delivery at Rs 611 directly from a refinery.

Analyst said the USDA cut soyabean yields due to the persistent drought and analysts said that could be supportive for palm oil prices.

A lower soyabean crop to be crushed into oil could shift more vegetable oil demand to the cheaper palm oil. Market players are also on the lookout for a possible El Nino weather pattern in South-East Asia as dry weather could cut palm oil output.

Towards the end of the day, Liberty quoted palmolein at Rs 617-621, super palmolein Rs 657, soya oil Rs 753 and sunflower refined oil Rs 753.

Ruchi quoted palmolein at Rs 611 for weekly delivery, Rs 615 for July and Rs 618-621 for August; soya refined oil at Rs 750-753 for July and August; sunflower refined oil at Rs 748 and Rs 753 for July and August respectively. Allana’s palmolein quoted at Rs 617. Mewah’s Rs 616 and Vaibhavi’s Rs 617.

In Saurashtra-Rajkot, on higher demand, groundnut oil increased Rs 50 to Rs 1,890 (Rs 1,840) for Telia tin and by Rs 20 to Rs 1,220 (Rs 1,200) for loose – 10 kg.

Malaysia's crude palm oil August contracts settled higher at MYR 3,059 (MYR 3,013), September at MYR 3,065 (MRY 3,012) and October at MYR 3,071 (MYR 3,023) a tone. The Bombay Commodity Exchange spot rates were (Rs/10 kg): Groundnut oil 1,185 (1,180); soya refined oil 747 (750); sunflower exp. ref. 700 (700); sunflower ref. 750 (750); rapeseed ref. oil 860 (865); rapeseed expeller ref. 830 (835); cotton ref. oil 722 (720) and palmolein 613 (613).

Published on July 13, 2012
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