In Edible oil market palmolein rose by Rs 1 while Cotton, Soyabean and Rapeseed refined oil dropped by Rs2 each on lack of demand and tracking weak futures prices. Groundnut oil and sunflower oil rule steady. A leading refinery reduced its rates for palmolein and soya oil by Rs3-Rs5 in second half due lack of demand. Volume was negligible and isolated. Moral was weak said traders.
Malaysian BMD Palm oil futures drop by 9, 17 and 19 ringgits a tone on Tuesday on some profit-taking after four straight sessions of gains, but hopes of better-than-expected inventory and export data next week limited losses.
Sources said in local market during the day buyers kept away tracking weak demand and bearish futures markets. Stockiest have covered sufficient quantity in last 8-10 days hence were not interested to bet for new as retail off take also eased. Slack demand forces local refineries to reduce the rates for commodity. There were no noticeable activities in the market during the day. Reports from the producing centers were also bearish.
Towards the end of the day Liberty was quoting palmolein at Rs518 – Rs520 for 27 February. Super palmolein Rs 563 and Sunflower refined oil Rs800. Ruchi quoted palmolein at Rs512 ex JNPT and Rs515 ex Patalganga, Soyabean refined oil at Rs715 and Sunflower refined oil Rs800. Allana’s rate for Palmolein was Rs516 and Super palmolein Rs562. In Saurashtra – Rajkot groundnut oil rule steady at Rs1,925 (Rs 1,925) for telia tin and Rs1,250 (Rs 1,250) for loose (10 kg).
On the National Commodities and Derivatives Exchange, soyabean refined oil’s March futures drop to Rs717.65 (Rs725.85) and April was down to Rs708.10 (Rs716.40). Malaysia’s crude palm oil’s March contracts settled lower at MYR 2,530 (MYR 2,539), April was MYR 2,547 (MYR 2,566) and May at MYR 2566 (MYR 2585) a tone.
The Bombay Commodity Exchange spot rates (Rs/10 kg): groundnut oil 1,260 (1,260), soya refined oil 718(720), sunflower exp. ref. 720 (725), sunflower ref. 800 (800), rapeseed ref. oil 803 (805), rapeseed expeller ref. 773(775) cottonseed ref. oil 618 (620) and palmolein 512 (511).