Edible oils prices declined sharply tracking improved resale selling and bearish Malaysian palm oil futures that fell to three-week low on Friday.
In Mumbai, palmolein edged lower by Rs 3 for 10 kg. Groundnut oil and rapeseed oil dropped by Rs 10 each. Soyabean refined and cotton refined oil declined by Rs 5 each. Sunflower oil ruled steady. The volume was low and isolated as stockists kept away from making fresh commitments.
Improving crop prospects in the US and India due to recent rain weighed on soyabeans, in turn hurting palm oil futures that slid over 3 per cent.
A Mumbai-based broker said that there was lack of local-level buying even at lower rates. Merely 40–50 tonnes for Palmolein changed hand in the range of Rs 602-603. Resellers prices were lower by Rs 8-9 for palmolein and Rs 15 for soyabean refined oil, keeping activities isolated. Revival of monsoon in most producing States has improved the prospects for Rabi crops, besides providing relief to standing kharif crops.Leading industry analyst Dorab Mistry has said that record palm oil stocks may weigh on prices. Towards the end of the day, Liberty quoted palmolein at Rs 610-611. super palmolein at Rs 650, soya oil at Rs780 and sunflower refined oil at Rs 795. Ruchi quoted palmolein at Rs 608, super palmolein at Rs 648, soya refined oil at Rs 780 and sunflower refined oil at Rs 790-795 for September-October delivery. Allana’s rate for palmolein was Rs 611.
In Saurashtra – Rajkot, groundnut oil declined by Rs 30 to Rs 1,900 (Rs 1,930) for Telia tin and dropped by Rs 20 to Rs 1,225 (Rs 1,245) for 10 kg in loose form.
On the National Board of Trade – Indore, soya refined oil September futures closed lower at Rs 801.50 (Rs 812.90) and October at Rs 790.40 (Rs 805.50). Malaysia's crude palm oil October contracts settled at MYR 2,865 (2,896), November at MYR 2,927 (2,948) and December at MYR 2,964 (2,989) a tonne.
The Bombay Commodity Exchange spot rates were (Rs/10 kg): Groundnut oil 1,230 (1,240), soya ref oil 775 (780), sunflower exp. ref. 740 (740), sunflower ref. 795 (795), rapeseed ref. oil 875 (885), rapeseed exp ref. 845 (855) cotton ref. oil 760 (765) and palmolein 607 (610).