Commodities

Profit-booking by traders weakens edible oils

Our Correspondent Mumbai | Updated on January 25, 2013 Published on January 25, 2013

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Edible oils market witnessed a weak trend tracking bearish Malaysian palm oil futures which fell on Friday, snapping four straight sessions of gains, as weak exports and a move by India to raise its base import price of crude palm oil and soya degum prompted traders to book profits.

All other edible oils ruled steady barring cotton refined oil which declined by Re 1.

Volume was isolated. Due to three days holiday mood, traders kept away.

Resellers were offering palmolein at Rs 505-507. India’s move to raise the base import price of crude palm oil by nearly 80 per cent also stoked concerns it could neutralise export duty cuts by major producers Indonesia and Malaysia.

The major concern is still on Malaysia’s inventory, which may reach another record high of 2.66 million tonnes by end-January.

This should limit price upside. In spot market, volume was thin and isolated on buyer resistance. During the day, hardly 90-100 tonnes of palmolein were resale traded in ready. Towards the end of the day, Liberty was quoting palmolein at Rs 518-520 for February. Super palmolein quoted Rs 563 for Feb, soya refined oil Rs 730 for Feb and sunflower refined oil Rs 800.

Ruchi quoted palmolein at Rs 521 for Feb 26 ex-Patalganga. Ex JNPT rates were Rs 513 for Feb 5-26; soyabean refined oil at Rs 721 for Feb 26; and sunflower refined oil Rs 800 for Feb 26.

Allana’s rates for palmolein were Rs 515 and super palmolein Rs 560 for Feb 10. In Saurashtra – Rajkot, groundnut oil dropped further by Rs 25 to Rs 1,985 (Rs 2,010) for telia tin and by Rs 15 to Rs 1,285 (Rs 1,300) for loose (10 kg).

The Bombay Commodity Exchange spot rates (Rs/10 kg): Groundnut oil 1,290 (1,290), soya refined oil 718 (705), sunflower exp. ref. 720 (715), sunflower ref. 795 (795), rapeseed ref. oil 820 (820), rapeseed expeller ref. 790 (790) cottonseed ref. oil 624 (625) and palmolein 507 (507).

Published on January 25, 2013
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