Strong domestic currency and weak foreign markets pulled down edible oils prices on Thursday.
Extended loss in Malaysian palm oil futures on back of strong ringgit following the US Federal Reserve's decision to postpone any reduction in its bond-buying programme pulled down palmolein and soyabean refined oil by Rs 6 and Rs 5 for 10 kg each in the domestic market.
Local refineries continued to slash rates for imported oils as strong rupee makes import cheaper. Routine volume in middle month kept morale cautious, said sources.
A Mumbai-based broker said: “Extended loss in futures markets, new arrivals of oilseeds in producing centres and strengthening of the rupee against greenback led prices down. New arrivals have already started in producing centres and will increase in the coming days. Secondly, Malaysia, has decided to keep its crude palm oil export tax for October at 4.5 per cent which is left unchanged since March”.
Towards the day’s close, Liberty was quoting palmolein at Rs 555, super palmolein Rs 585 and super deluxe Rs 605, soyabean refined oil Rs 635 and sunflower refined oil Rs 815. Ruchi quoted palmolein at Rs 555, soyabean refined oil Rs 625 and sunflower refined oil Rs 810. Allana was quoting palmolein at Rs 553, super palmolein Rs 610, soyabean refined oil Rs 627 and sunflower refined oil Rs 815.
In Rajkot, groundnut oil declined by Rs 10 to Rs 1,300 for telia tin and loose (10 kg) ruled steady at Rs 850.
Malaysia BMD crude palm oil ’s October contracts settled higher at MYR 2,322 (MYR 2,329), November at MYR 2,318 (MYR 2,323) and December at MYR 2,317 (MYR 2,322. The Bombay Commodity Exchange spot rates (Rs/10 kg) were: groundnut oil 860 (850), soya refined oil 625 (631), sunflower exp. ref. 740 (730), sunflower ref. 805 (810), rapeseed ref. oil 717 (717), rapeseed expeller ref. 687 (687) cottonseed ref. oil 655 (656) and palmolein 554 (560). Vikram Global Commodities (P) Ltd quoted Rs 612/10 kg for Malaysia super palmolein -forward delivery.