MARKET DEVELOPMENT
Stronger Re, Poor Inquiries Drag Edible Oils
Stronger Re, Poor Inquiries Drag Edible Oils
15/01/2014 (Hindu Business Line) - The edible oils market extended its bearish trend on Monday on slack physical demand and weak futures market, led by strong domestic currency, higher December-end palm oil stocks and lower exports from Malaysia.
In Mumbai, rapeseed and cotton refined oil dropped by Re 1 and Rs 3 each for 10 kg. Imported palmolein and soyabean refined ruled unchanged, while groundnut and sunflower oil ruled steady despite firm reports from Saurashtra. Malaysian stocks rose to 1.99 million tonnes in December from a month ago, the Malaysian Palm Oil Board said on Friday. Stocks hit a nine-month high. Market players had expected inventories to fall to 1.96 million tonnes. Weaker-than-expected exports during January 1-10 period also dragged benchmark prices.
A trader said that there is no incentive for prices to move higher and they are still stuck in a range.
Despite hike in import duty of refined oil, there is no improvement in demand. During the day, refineries sold hardly 100-150 tonnes of palmolein at Rs 570 in isolated trade, sources said.
Towards the day’s close, Liberty quoted palmolein at Rs 570; super palmolein at Rs 592; super deluxe palmolein at Rs 612; soyabean refined oil at Rs 640; and sunflower refined oil at Rs 700. Ruchi quoted palmolein at Rs 570; soyabean refined oil at Rs 635; and sunflower refined oil at Rs 670. Allana was quoting palmolein at Rs 568-570; soyabean refined oil at Rs 640; and sunflower refined oil at Rs 700.
In Rajkot, groundnut oil increased by Rs 35 to touch Rs 1,220 (Rs 1,185) for telia tin and Rs 15 higher at Rs 775 (Rs 760) for loose (10 kg). On the National Commodities and Derivatives Exchange, February contracts closed lower at Rs 671.70 (Rs 675.45); March at Rs 666.00 (Rs 669.70); and April at Rs 665.30 (Rs 668.30).
Vikram Global Commodities (P) Ltd quoted Rs 600/10 kg for Malaysia super palmolein January delivery.
Malaysia BMD crude palm oil February contracts settled lower at MYR 2,472 (MYR 2,499); March at MYR 2,493 (MYR 2517); and April at MYR 2,506 (MYR 2,528).
The Bombay Commodity Exchange spot rates (Rs/10 kg) were: groundnut oil 780 (780); soya refined oil 635 (635); sunflower exp. ref. 610 (610); sunflower ref. 670 (670); rapeseed ref. oil 725 (726); rapeseed expeller ref. 695 (696); cottonseed ref. oil 605 (608); and palmolein 568 (568).
In Mumbai, rapeseed and cotton refined oil dropped by Re 1 and Rs 3 each for 10 kg. Imported palmolein and soyabean refined ruled unchanged, while groundnut and sunflower oil ruled steady despite firm reports from Saurashtra. Malaysian stocks rose to 1.99 million tonnes in December from a month ago, the Malaysian Palm Oil Board said on Friday. Stocks hit a nine-month high. Market players had expected inventories to fall to 1.96 million tonnes. Weaker-than-expected exports during January 1-10 period also dragged benchmark prices.
A trader said that there is no incentive for prices to move higher and they are still stuck in a range.
Despite hike in import duty of refined oil, there is no improvement in demand. During the day, refineries sold hardly 100-150 tonnes of palmolein at Rs 570 in isolated trade, sources said.
Towards the day’s close, Liberty quoted palmolein at Rs 570; super palmolein at Rs 592; super deluxe palmolein at Rs 612; soyabean refined oil at Rs 640; and sunflower refined oil at Rs 700. Ruchi quoted palmolein at Rs 570; soyabean refined oil at Rs 635; and sunflower refined oil at Rs 670. Allana was quoting palmolein at Rs 568-570; soyabean refined oil at Rs 640; and sunflower refined oil at Rs 700.
In Rajkot, groundnut oil increased by Rs 35 to touch Rs 1,220 (Rs 1,185) for telia tin and Rs 15 higher at Rs 775 (Rs 760) for loose (10 kg). On the National Commodities and Derivatives Exchange, February contracts closed lower at Rs 671.70 (Rs 675.45); March at Rs 666.00 (Rs 669.70); and April at Rs 665.30 (Rs 668.30).
Vikram Global Commodities (P) Ltd quoted Rs 600/10 kg for Malaysia super palmolein January delivery.
Malaysia BMD crude palm oil February contracts settled lower at MYR 2,472 (MYR 2,499); March at MYR 2,493 (MYR 2517); and April at MYR 2,506 (MYR 2,528).
The Bombay Commodity Exchange spot rates (Rs/10 kg) were: groundnut oil 780 (780); soya refined oil 635 (635); sunflower exp. ref. 610 (610); sunflower ref. 670 (670); rapeseed ref. oil 725 (726); rapeseed expeller ref. 695 (696); cottonseed ref. oil 605 (608); and palmolein 568 (568).