Edible oils prices crashed in domestic markets on Wednesday on rumours that palm oil importers are seeking to renegotiate contracts after prices plunged to their lowest levels in almost three years. Palmolein prices breached the level of Rs 500 in domestic market. Activities remained at standstill except few players who took the benefit of lower price by covering a small quantity in ready sale.
Meanwhile in Mumbai, tracking sharp decline in global futures and rising arrivals of new crops in producing centres, all edible oils lost ground. Imported palmolein and soyabean refined oil dropped by Rs 21 and Rs 23 for 10 kg each. Groundnut and cotton refined oil declined by Rs 30 each. Sunflower oil was down by Rs 25, while rapeseed oil gained Rs 15. Ruchi sold 50-100 tonnes of soya refined oil at Rs 651. It quoted palmolein at Rs 498 for forward delivery.
In palmolein about 80-100 tonnes were traded in resale at Rs 501-502 ex-JNPT and 50-100 tonnes at Rs 504 ex-Patalganga.Towards the day’s close, Liberty was quoting palmolein at Rs 502-505 for October 10-November 1 delivery and super palmolein at Rs 555, soya oil at Rs 660 for October. Ruchi quoted palmolein at Rs 498 for October 10-November 30 and super palmolein at Rs 558. Soya refined oil was Rs 651 and sunflower refined oil Rs 691 for October – November. Allana’s rates were Rs 502 for palmolein and Rs 555 for super palmolein.
Malaysia's crude palm oil November contracts closed at MYR 2,269 (2,175), December at MYR 2,351 (2,255) and January MYR 2,439 (2,360) a tonne. In Saurashtra – Rajkot, groundnut oil Telia tin crashed by Rs 80 to 1,450 and loose 10 kg declined by Rs 55 to Rs 935 .
The Bombay Commodity Exchange spot rates were (Rs/10 kg): groundnut oil 1,000 (1,030), soya refined oil 651 (674), sunflower exp. ref. 650 (675), sunflower ref. 700 (725), rapeseed ref. oil 800 (815), rapeseed expeller ref. 770 (785) cotton ref. oil 620 (650) and palmolein 503 (524).