Ahead of Malaysian palm oil production and inventories data, edible oils market may bottom out and the next few days will be crucial in determining the course of the trade.
Shailesh Kataria of Riddhi Broker said, “expectation of lower Malaysia's palm stocks in April pushed up sentiment later on the day. Investors avoided taking risky bets ahead of official data for stocks and output due on Friday. Market may see bottoming out. The next few days will be crucial in determining market direction.”
Groundnut oil continued to decline on Tuesday tracking bearish reports from the producing centres. With a drop of Rs 10 more, groundnut oil in the first seven days of this month registered total loss of Rs 60 for 10 kg in Mumbai. Slack demand pulled down rapeseed oil by R e1 and cotton oil by Rs 2. In the absence of active buyers, palmolein, sunflower and soya oil ruled unchanged. The volume was thin and sentiments remain cautious tracking bearish domestic futures market, said sources.
An observer said, “leading local refineries lowered the prices in absence of demand. As some importers were offering lower rates volume remain subdued in spot. Importers sold about 350-400 tonnes of palmolein at Rs 493 for delivery from June 1-10. Resellers sold 150-200 tonnes of palmolein at Rs 496 for ready - near term delivery. There was no volume in other oils.”
Arrivals of soyabean in Madhya Pradesh were 30,000 bags and the mandi prices were Rs 3,950-75 and plant delivery Rs 4,010-25. Mustard seed arrivals were 3.90 lakh bags and its prices were Rs 3,250-3,490.
Towards the day’s close, Liberty was quoting palmolein at Rs 500-505, super palmolein Rs 543 and sunflower refined oil Rs 780. Ruchi was quoting palmolein at Rs 506 ex-Patalganga, soyabean refined oil Rs 660 and Rs 780 for sunflower refined oil. Allana was quoting super palmolein Rs 545. In Saurashtra – Rajkot groundnut oil rose by Rs 5 to Rs 1,725 for telia tin and Rs 1,120 (Rs1,120) for loose (10 kg).
Malaysian BMD crude palm oil’ s June futures closed higher at MYR 2,258 (MYR 2,249), July at MYR 2,260 (MYR 2,250) and August at MYR 2,256 (MYR 2,248) a tonne.
The Bombay Commodity Exchange spot rates (Rs/10 kg): groundnut oil 1,130 (1,140), soya refined oil 665 (665), sunflower exp. ref. 685 (685), sunflower ref. 765 (765), rapeseed ref. oil 677 (678), rapeseed expeller ref. 647 (648) cottonseed ref. oil 638 (640) and palmolein 500 (500).
Vikram Global Commodities, Chennai has quoted Malaysian super palmolein at Rs 548 ex-Chennai.