04/02/2012 (Hindu Business Line) - Palmolein extended losses for the fourth consecutive day by Rs 2 for 10 kg on Friday, ignoring a rebound in Malaysian crude palm oil from its six-week low.

Cottonseed refined oil declined by Rs 3 and sunflower expeller refined oil by Rs 5 for 10 kg. Groundnut oil, soya refined oil and rapeseed refined oil were unchanged. Need-based local demand kept volume thin. Malaysian palm oil futures ended higher due to speculative buying, but a weak demand outlook may limit the upside, said market sources.

A leading broker said refiners reduced prices of palmolein because of selling pressure from resellers. Despite the month just having begun, retail demand remains poor in the ready market. Stockists preferred to take deliveries of old commitments and avoided new buying. About 200-250 tonnes of palmolein traded at Rs 558-559. Weak reports from producing centres weigh on the indigenous oils market. Arrival of groundnuts, mustard and soyabean improved this week at producing centres, the broker added.

Resellers quoted palmolein at Rs 557-558. Liberty offered palmolein at Rs 558-560. Ruchi quoted palmolein at Rs 561, soya refined oil at Rs 665 and sunflower refined oil at Rs 675. Allana quoted palmolein at Rs 555. In Saurashtra and Rajkot, groundnut oil was unchanged at Rs 1,605 for a telia tin and at Rs 1,045 for loose (10 kg).

Malaysian crude palm oil's February contracts settled at 3,052 ringgit (3,030 ringgit), March at 3,082 ringgit and Aprilat 3,085 ringgit (3,056 ringgit) a tonne. On the National Board of Trade in Indore, soya refined oil for February delivery closed higher at Rs 684 (Rs 679.50) and for March lower at Rs 672 (Rs 675).

Bombay Commodity Exchange spot rates (Rs/10 kg): groundnut oil — 1,030 (1,030), soya refined oil — 655 (655), sunflower seed exp. ref. — 600 (605), sunflower seed ref. — 680 (680), rapeseed ref. oil — 745 (745), rapeseed expeller ref. — 715 (715), cottonseed ref. oil — 605 (608), and palmolein — 558 (560).