16/02/2012 (Hindu Business Line) - Weak sentiment prevailed in edible oil market on Wednesday due to lack of demand. Most edible oil prices tracked the bearish trend prevailing in the foreign and domestic markets. Groundnut oil and rapeseed oil declined by Rs 5 each, cotton refined oil extended losses by Rs 2 and palmolein dropped by Re.1 for 10 kg. Sunflower and soyabean refined oil ruled unchanged.

Volume was negligible due to absence of fresh demand. Continuouss import arrivals and shortage of storage led to a higher selling pressure in the physical market. Mumbai commodity exchange will remain closed on Thursday due to election.

Analysts said that market sentiment remains weak as lower closing of Malaysian palm oil futures added more pressure at domestic level. Malaysia BMD CPO futures fell succumbing to profit-taking after yesterday's rally to a one-month high. CPO futures closed lower by 10, 8 and 2 ringgits a tonne, reflecting weaker export demand and tracking a decline in CBOT soya oil. Malaysia's palm oil exports in the first 15 days of February fell 14 per cent from a month earlier to 4,94,294 tonnes, cargo surveyor SGS (Malaysia) Bhd said on Monday.

Meanwhile, India's January edible oil imports fell 6.4 per cent from a year ago to 6,47,693 tonnes due to higher summer-sown oilseed output and weak local demand. China is likely to import 3.97 million tonnes of soyabeans in February, down 14 per cent from January, the State-backed China National Grain and Oils Information Centre said on Wednesday.

A wholesaler said volume in palmolein was negligible and isolated in resale as market witnessed good volume previous day. Continuous arrivals of import shipment and shortage of storage tank - space have pushed up storage charges making import cost expensive. On Tuesday about 1,000-1,200 tonnes of palmolein were traded, hence, stockists keep away from fresh buying. Local retail demand was also less than expected keep volume routine at semi-wholesale level, he said.

In local market last resalers were quoting palmolein Rs 558-560. Liberty was quoting palmolein at Rs 563-564. Ruchi was quoting palmolein at Rs 560; soya refined oil at Rs 665 and sunflower refined oil at Rs 668. Allana's Palmolein was at Rs 565 and Mewah was quoting palmolein at Rs 561. In Saurashtra – Rajkot, groundnut oil ruled steady at Rs 1,655 for Telia tin and Rs 1,085for loose - 10kg. In Madhya Pradesh, soyabean arrivals were about 1.25 lakh bags. In Indore market, soya refined oil was at Rs 662-665 and soyabean prices were Rs 2,340-2,430 a quintal. Domestic soya oil futures improved on speculative buying.

Bombay Commodity Exchange spot rates (Rs/10 kg): groundnut oil 1,060 (1,065), soya refined oil 666 (666), sunflower exp. ref. 615 (615), sunflower ref. 670 (670), rapeseed ref. oil 765 (770), rapeseed expeller ref. 735 (740), cotton ref. oil 615 (617) and palmolein 561 (562).