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Edible oils prices dropped sharply on Wednesday tracking bearish futures markets that reacted to a US Department of Agriculture report on soyabean showing higher supply.
Imported palmolein and soyabean refined oil declined by Rs 5 and Rs 10 each for 10 kg. Groundnut oil drop by Rs 10 and cotton oil eased further by Rs 5. Sunflower and rapeseed oil were unchanged.
The market resumed its downward journey on fundamentals.
In Malaysia, palm oil inventory climbed for the fourth straight month to a record 2.56 million tonnes in November and it weighed on the market. Domestic soya oil futures dropped by more than Rs 13.
A Mumbai-based broker said: “Due to huge stocks and over supply stockists kept away except taking benefits of lower rates in the bear market. As most of the contracts were made at higher prices, traders and stockists are forced to offload it out at lower rates.”
“A leading seller has sold about 450-500 tonnes of palmolein at Rs 470 ex-JNPT in ready. Prices are lower than prevailing market rates. Buyers have taken advantage of the lower offering. Except that there was no trade due to lack of demand. Resellers were offered Rs 470 for palmolein to limit losses,” he said.
In Saurashtra and Rajkot, groundnut oil declined by Rs 10 to Rs 1950 (Rs 1,960) for a telia tin and Rs 1,270 (Rs 1,280) for loose (10 kg).
Towards the close of the day Liberty quoted palmolein at Rs 485 –487 ex-Ghatkopar and Rs 483-485 ex-Shapur, super palmolein at Rs 535 for Jan 1-15, soya refined oil at Rs 700 and sunflower refined oil at Rs 785.
Ruchi quoted palmolein at Rs 481 for Dec and Rs 484 for Jan, soyabean refined oil at Rs 685, sunflower refined oil Rs 780 for Dec 21-30 and Rs 785 for January.
Malaysia’s crude palm oil January contracts settled lower at MYR 2,141 (2,187) , February MYR 2,238 (2,291) and March MYR 2,316 (2,365) a tonne.
The Bombay Commodity Exchange spot rates (Rs/10 kg) were : Groundnut oil 1,250 (1,260), soya refined oil 685 (695), sunflower exp. ref. 720 (720), sunflower ref. 780 (785), rapeseed ref. oil 810 (810), rapeseed expeller ref. 780 (780) cottonseed ref. oil 620 (625) and palmolein 480 (485).
Vikram Global Commodities of Chennai offered Malaysian super palmolein at Rs 556/10 kg.
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