05/02/2013 (Hindu Business Line) -   Edible oil prices rule weak on Monday despite extended gain in Malaysian palm oil futures. About 1100 – 1200 tones of Palmolein were traded as stockiest continued covering expecting short term positive demand outlook. In spot groundnut oil drop by Rs10 and cotton refined oil decline by Rs2 on weak reports from producing centers. Palmolein weaken by Rs1 while Soyabean, Sunflower and Rapeseed oil rule unchanged. Moral was steady.

Malaysian BMD Palm oil futures extended gain by 12, 7 and 8 ringgits a tone on Monday tracking higher soyabeans and soyabean oil on persistent concerns over dry weather in Argentina. It's the South American weather that is serving as the pull factor. Continuous wide discount in cash crude palm oil to futures, sentiment is still cautious as traders await the expected high stocks for January observer said.

Meanwhile India’s Solvent Extractors Association of India (SEAI) has in concern voice said “Reduction in duty differential between refined palmolein and Crude palm oil (CPO) by government would once again lead to a large scale import of the refined palmolein there by resulting in further underutilization of capacity of the Indian refining Industry. Instead of industry’s request to maintain 10% duty differential the government has actually reduced the differential duty to 5%”.

Sources said in local market during the day Ruchi sold about 600- 700 tons of Palmolein at Rs.511 ex JNPT. Vaibhavi sold 150- 200 tones of palmolein at Rs510 and Resellers offloaded about 200 – 250 tons of Palmolein at Rs.509 ex JNPT. Towards the end of the day Liberty was quoting palmolein at Rs518 for 27 February. Super palmolein Rs 563, Soya refined oil Rs730 and Sunflower refined oil Rs800. Ruchi quoted palmolein at Rs521, Soyabean refined oil at Rs721 and Sunflower refined oil Rs800 for February. Allana’s rate for Palmolein was Rs516 and Super palmolein Rs562. In Saurashtra – Rajkot groundnut oil drop further by Rs25 to Rs1,925 (Rs 1,950) for telia tin and by Rs20 to Rs1,250 (Rs 1,270) for loose (10 kg).

On the National Commodities and Derivatives Exchange, soyabean refined oil’s March futures was Rs724.40 (Rs723.80) and April was Rs716.10 (Rs715.10). Malaysia’s crude palm oil’s March contracts settled higher at MYR 2,540 (MYR 2,528), April was MYR 2,564 (MYR 2,557) and May at MYR 2584 (MYR 2576) a tone.

The Bombay Commodity Exchange spot rates (Rs/10 kg): groundnut oil 1,260 (1,270), soya refined oil 720(720), sunflower exp. ref. 725 (720), sunflower ref. 800 (800), rapeseed ref. oil 805 (805), rapeseed expeller ref. 775(775) cottonseed ref. oil 620 (622) and palmolein 511 (512).