Panic selling drives buyers away

Edible oils market lost ground on Tuesday as prices dropped sharply in physical market on panic selling tracking sharp decline in futures. Malaysian crude palm oil futures fell to a one-month low on Tuesday tracking soyabean contracts in the US which had plunged to the permissible limit on Monday. In Mumbai, imported palmolein and soyabean refined oil declined further by Rs 9 for 10 kg. Groundnut and cotton refined oil lost Rs 30 and Rs 4 each, tracking bearish reports from Saurashtra. Rapeseed and sunflower oil edged down by Rs 10 and Rs 5 each on panic selling pressure. A broker said that tracking panic in foreign and domestic futures markets, local refineries reduced their rates for edible oils by Rs 5-10, while speculators and resellers offered at further lower rates that kept buyers away from fresh bet. At the end of the day, Liberty was quoting palmolein at Rs 585-588, super palmolein Rs 635, soya oil Rs 755 and sunflower ref oil Rs 780. Ruchi quoted palmolein Rs 585-590, super palmolein Rs 630-635, soya ref oil Rs 745 and sunflower ref oil Rs 775. Allana’s rate for palmolein was Rs 585 and super palmolein Rs 635. Vaibhavi’s rate was Rs 585-588. Resellers were quoting palmolein at Rs 580-582. On the NCDEX, soyabean ref oil Oct futures closed at Rs 743.70 (Rs 763.65); Nov contracts closed at Rs 724.50 (Rs 744.10). Dec closed at Rs 726.50 (Rs 744.35). Malaysia's crude palm oil Oct contracts closed at MYR 2,714 (2,873), Nov at MYR 2,803 (2,936) and Dec at MYR 2,861(2,986) a tonne. The Bombay Commodity Exchange spot rates were (Rs/10 kg): Soya ref oil 751 (760), sunflower exp. ref. 725 (730), sunflower ref. 780 (780), rapeseed ref. oil 860 (870), rapeseed exp ref. 830 (840) cotton ref. oil 740 (744) and palmolein 585 (594).