MARKET DEVELOPMENT
Falling Edible Oil Prices Keep Stockists Away
Falling Edible Oil Prices Keep Stockists Away
08/01/2014 (Hindu Business Line) - Edible oils extended their bearish trend for the fourth day on Tuesday, tracking sharp declines in the futures market. Selling pressure in the physical market also aggravated the situation. Imported palmolein declined by Rs 2 and groundnut oil by Rs 10 for 10 kg each. Soyabean, sunflower and cotton oil ruled steady, while rapeseed oil gained Rs 5.
Domestic soya oil futures dropped by one per cent, tracking global markets. Local refineries reduced their rates for palmolein, but the response was poor. The volume was almost nil as stockists kept away. During the day, hardly 50-60 tonnes were traded. There was no direct trade at local refineries despite their cheap offerings.
“Prospects of higher production of palm oil dragged US and China soya markets. Larger soyabean crops will mean higher volume to be crushed, adding to global stockpiles and pressure on competing palm oil,” said an analyst.
Towards the day’s close, liberty was quoting palmolein at Rs 570, super palmolein at Rs 594, super deluxe palmolein at Rs 614, soyabean refined oil at Rs 645 and sunflower refined oil at Rs 700. Ruchi quoted palmolein at Rs 570, soyabean refined oil at Rs 640 and sunflower refined oil at Rs 675. Allana was quoting palmolein at Rs 570, soyabean refined oil at Rs 640 and sunflower refined oil at Rs 675. Resellers were quoting palmolein at Rs 566-567, ex JNPT.
On the NCDEX, February contracts declined by Rs 6.65 to Rs 672.70 (Rs 679.35), March dropped by Rs 7.15 to Rs 667.50 (Rs 674.65) and April by Rs 6.80 to Rs 667.00 (Rs 673.80).
Vikram Global Commodities (P) Ltd quoted Rs 630/10 kg for Malaysia super palmolein January delivery.
Malaysia BMD crude palm oil February contracts settled lower at MYR 2,542 (MYR 2,590), March settled at MYR 2,561 (MYR 2604) and April at MYR 2,569 (MYR 2,610).
The Bombay Commodity Exchange spot rates (Rs/10 kg) were: groundnut oil 790 (800), soya refined oil 645 (645), sunflower exp. ref. 630 (630), sunflower ref. 675 (675), rapeseed ref. oil 735 (730), rapeseed expeller ref. 705 (700) cottonseed ref. oil 605 (605) and palmolein 570 (572).
Domestic soya oil futures dropped by one per cent, tracking global markets. Local refineries reduced their rates for palmolein, but the response was poor. The volume was almost nil as stockists kept away. During the day, hardly 50-60 tonnes were traded. There was no direct trade at local refineries despite their cheap offerings.
“Prospects of higher production of palm oil dragged US and China soya markets. Larger soyabean crops will mean higher volume to be crushed, adding to global stockpiles and pressure on competing palm oil,” said an analyst.
Towards the day’s close, liberty was quoting palmolein at Rs 570, super palmolein at Rs 594, super deluxe palmolein at Rs 614, soyabean refined oil at Rs 645 and sunflower refined oil at Rs 700. Ruchi quoted palmolein at Rs 570, soyabean refined oil at Rs 640 and sunflower refined oil at Rs 675. Allana was quoting palmolein at Rs 570, soyabean refined oil at Rs 640 and sunflower refined oil at Rs 675. Resellers were quoting palmolein at Rs 566-567, ex JNPT.
On the NCDEX, February contracts declined by Rs 6.65 to Rs 672.70 (Rs 679.35), March dropped by Rs 7.15 to Rs 667.50 (Rs 674.65) and April by Rs 6.80 to Rs 667.00 (Rs 673.80).
Vikram Global Commodities (P) Ltd quoted Rs 630/10 kg for Malaysia super palmolein January delivery.
Malaysia BMD crude palm oil February contracts settled lower at MYR 2,542 (MYR 2,590), March settled at MYR 2,561 (MYR 2604) and April at MYR 2,569 (MYR 2,610).
The Bombay Commodity Exchange spot rates (Rs/10 kg) were: groundnut oil 790 (800), soya refined oil 645 (645), sunflower exp. ref. 630 (630), sunflower ref. 675 (675), rapeseed ref. oil 735 (730), rapeseed expeller ref. 705 (700) cottonseed ref. oil 605 (605) and palmolein 570 (572).