Edible oil market saw mixed trend on Tuesday with a steady rise in selected oils. Rapeseed (Mustard) oil and cotton refined extended their gains by Rs 10 and Rs 14 for 10 kg on firm reports from production centres. Backed by higher demand, selling pressure eased. Soyabean refined oil rose by Rs 2 and groundnut oil by Rs 5. Sunflower and palmolein ruled steady as demand rose.
Volume was thin and need-based, tracking the bearish Malaysian Palm oil and domestic futures markets. The morale turned cautious and slightly weak on expectations on the formation of cloudy weather or rain in the main production centres this week. A leading broker said that traders are watching the possibility of an El Nino weather pattern returning to Southeast Asia, as it could hurt palm oil output for top producers Indonesia and Malaysia.
He added that demand may shift to refined palm oil as it is trading at a discount of above $200. According to sources, tracking the weak Malaysian palm oil futures domestic refineries have lowered the rates for palmolein. During the day Vaibhavi sold about 150-200 tonnes of palmolein at Rs 615 while 150-200 tonnes were resale traded at Rs 615-616. The analyst said that the firm undercurrent of the market is based on the US’ and India’s weather while weakness will be led by easing palm oil exports from Malaysia and the progress of monsoon in India. Overall, the weather will remain in focus.
Demand is expected to be buoyant ahead of festivals in Asian countries, which celebrate key holidays from August to November.
Towards the end of the day, Liberty was quoting palmolein at Rs 624-628, Super palmolein at Rs 672, Soya oil at Rs 765 and Sunflower refined oil at Rs 765. Ruchi quoted palmolein at Rs 615– 620 for July and Rs 624-628 for August. Soya refined oil was at Rs 760 for July and Rs 764–768 for August. Sunflower refined oil was at Rs 760 for July and Rs 764-768 for August. Allana’s rate for Palmolein was Rs 623 for August 1-10. Bunge’s rate was Rs 620 for July and Vaibhavi quoted palmolein at Rs 615.
In Saurashtra-Rajkot, on higher demand, groundnut oil increased by Rs 10 to reach Rs 1,890 for Telia tin and up by Rs 5 to Rs 1,230 for loose - 10kg.
Malaysia's crude palm oil August contracts settled higher at MYR 3,042 (MYR 3,100), September at MYR 3,056 (MRY 3,114) and October at MYR 3,062 (MYR 3,122) a tonne.
Bombay Commodity Exchange’s spot rates (Rs/10 kg): groundnut oil Rs 1,195 (1,190), soya refined oil Rs 757 (755), sunflower exp. ref. Rs 700 (700), sunflower ref. Rs 760 (760), rapeseed ref. oil Rs 880 (870), rapeseed expeller ref. Rs 850 (840) cotton ref. oil Rs 749 (735) and palmolein Rs 618 (618).