Imported palmolein extended its gain by Rs 3 for 10 kg on Thursday despite Malaysian palm oil futures slipping to a six-week low on Thursday. Rapeseed oil rose by Rs 2. Groundnut oil, soya oil, sunflower and cottonseed oil were unchanged in absence of fresh demand.

A broker said that the volume in the spot market was low for ready delivery but stockists bought routine quantity of palmolein for nearby delivery. The under current of the market was firm as traders believe that a strong US currency will push up the domestic market further. On the other side, weakness in the Malaysian ringgit against the dollar increased selling pressure in Malaysian palm oil futures market. Crude palm oil futures closed lower amid concerns about global growth following disappointing data from the euro zone and the US. Strong dollar gains against euro and other currencies overseas and a lower domestic equity market also put pressure on the rupee, he said.

The Malaysian Palm Oil Board will issue official data on output and stocks next week. A lower output will add further stress to palm oil stocks, which fell below 20 lakh tonnes in March. In Mumbai, stockists covered about 500-600 tonnes palmolein at Rs 662 for May 10 delivery from Ruchi. Another 80-100 tonnes palmolein was traded at Rs 665 in resale.

There was no demand for indigenous oils on hope of new arrivals of crops in producing areas. Rapeseed arrivals were about 2.25 lakh bags national level and soyabean arrivals in Madhya Pradesh were 40,000 – 45,000 bags. Soyabean prices were Rs.3470 -3500 Mandi level and Rs.3600 – 3650 plant level. New groundnut crop is arriving in small quantity at some mandis of Saurashtra but continuous demands for nuts from exporters is supporting the price.

Towards the end of the day, Liberty quoted palmolein at Rs 670-672, soyabean refined oil Rs 740 and sunflower refined oil at Rs 745. Ruchi quoted palmolein at Rs 662-664, soya refined oil at Rs 731 and sunflower refined oil at Rs 738. Allana's rate for Palmolein was Rs.670 for 15 – 31 May. Mewah's rate was Rs 665. Bunge quoted palmolein at Rs 668 for May 20.

Resellers offered palmolein at Rs 660-661. Saurashtra – Rajkot groundnut oil dropped by Rs 35 to Rs 1,950 (Rs 1,985) for Telia tin and declined by Rs 30 to Rs 1,270 (Rs 1300) for loose (10kg).

Malaysia's crude palm oil June contracts closed lower at MYR 3,387 (MYR 3,463), July ended at MYR 3,377 (MYR 3,452) and August at MYR 3,352 (MYR 3,435) a tonne.

The Bombay Commodity Exchange spot rates were (Rs/10 kg) : Groundnut oil 1,260 (1,260), soya refined oil 728 (728), sunflower exp. ref. 670 (670), sunflower ref. 740 (740), rapeseed ref. oil 822 (820), rapeseed expeller ref. 792 (790) cotton ref. oil 705 (705) and palmolein 665 (662).

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