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The edible oils futures market rebounded on Monday as the rupee weakened to 54.70 against the dollar. A weaker rupee makes import costlier, raising demand for local produce. Spot prices declined due to extended loss in Malaysian palm oil futures and an initial drop of more than Rs 15 for 10 kg in domestic soyabean oil futures, which later recovered and closed higher. The volume in the physical market also improved as stockists placed new orders as quotations . Most edible oils declined here by Rs 2-10 for 10 kg on reports of higher stocks. Malaysian palm oil futures extended loss tumbling to their lowest in more than three weeks on Monday, as traders continued to worry over large stockpiles. Analysts expected inventories in Malaysia to reach a fresh record high in October on the back of strong production.
Following a bearish trend overseas, local refineres reduced prices of palmolein and soyabean oil. Stockists bought at these lower prices, as demand is expected to rise ahead of Diwali and supplies are tight. About 1,000 tonnes were traded during the day.
Ruchi sold about 450-500 tonnes of palmolein at Rs 500-505 and 50-60 tonnes of soyabean refined oil at Rs 655. Liberty sold 100-150 tonnes of palmolein at Rs 510. About 250-300 tonnes of palmolein were traded at Rs 507-508 in the resale market. At the end of the day, Liberty quoted palmolein at Rs 510-512 and super palmolein at Rs 570 and soya refined oil at Rs 660. Ruchi quoted palmolein at Rs 505 and super palmolein at Rs 566, soyabean refined oil at Rs 655 and sunflower refined oil at Rs 720. Allana offered super palmolein at Rs 564. In Saurashtra and Rajkot, a telia tin of groundnut oil declined to Rs 1,800 (Rs 1,830) and loose (10 kg) to Rs 1,170 (Rs 1190) due to holidays and expectation of higher arrivals after Diwali.
On the National Commodities and Derivatives Exchange, soyabean refined oil’s December futures closed at Rs 668 (Rs 663.90) and January at Rs 672 (Rs 669). Malaysia’s crude palm oil’s December contracts closed at MYR2,352 (MYR2,427), January at MYR2,411 (MYR2,496) and February at MYR2,455 (MYR2,541) a tonne.
The Bombay Commodity Exchange spot rates (Rs/10 kg): groundnut oil 1,160 (1,170), soya refined oil 655 (665), sunflower exp. ref. 670 (670), sunflower ref. 720 (721), rapeseed ref. oil 835 (840), rapeseed expeller ref. 805 (810) cottonseed ref. oil 690 (695) and palmolein 510 (512).
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