MARKET DEVELOPMENT
Short-Term Outlook Bearish for Edible Oils
Short-Term Outlook Bearish for Edible Oils
17/07/2013 (Hindu Business Line) - Bearish trend continued in edible oils market on Tuesday on slack demand and weak futures. Malaysian palm oil futures extended their loss for the fifth consecutive day as worries over weak export demand and a higher production persisted.
At the domestic level, expectation of higher kharif crops and early arrivals of seeds in producing centres pulled futures .
Sources said that tracking firm domestic currency, weak futures and lower physical demand local refineries have reduced their rates for commodity by Rs 5.
Following that, in the spot market prices for soyabean, sunflower and rapeseed oil declined by Rs 5 for 10 kg each while palmolein and cotton refined oil dropped by Rs 2 each.
During the day, hardly 100-150 tonnes of palmolein were sold in resale at Rs 525-527. About 80-100 tonnes of soyabean refined oil were sold by Ruchi at Rs 645.
Edible oils are seen bearish in the near term given the higher plantings of oilseeds and the approaching of peak production season in palm oil growing nations.
Towards the day’s close, Liberty was quoting palmolein at Rs 533-535, super palmolein Rs 570 for July-August and super deluxe Rs 590. Ruchi quoted palmolein at Rs 538 for July-August-September, soyabean refined oil at Rs 645 for July, Rs 650 for August and sunflower refined oil Rs 810 for July-August. Allana was quoting palmolein at Rs 533-536 and super palmolein Rs 570. Gokuls’ palmolein’s rates were Rs 535. Resellers were quoting Rs 525-526.
Soyabean arrivals at the national level were about 95,000 bags and its prices were Rs 3,500-3,600 ex mandi and Rs 3,725-3,775 for plant delivery. Mustard seeds arrivals were 85,000 bags and the prices were Rs 3,070-3,600.
Malaysia BMD crude palm oil’s August contracts was lower by 27 to MYR 2,258, September by 31 to MYR 2,242 and October by 36 to MYR 2,227 a tonne.
The Bombay Commodity Exchange spot rates (Rs/10 kg) were: groundnut oil 1,000 (1,000), soya refined oil 650 (655), sunflower exp. ref. 750 (755), sunflower ref. 810 (815), rapeseed ref. oil 685 (690), rapeseed expeller ref. 655 (660) cottonseed ref. oil 650 (652) and palmolein 528 (530).
Vikram Global Commodities (P) Ltd quoted Rs 570/10 kg for Malaysian super palmolein - July delivery.
At the domestic level, expectation of higher kharif crops and early arrivals of seeds in producing centres pulled futures .
Sources said that tracking firm domestic currency, weak futures and lower physical demand local refineries have reduced their rates for commodity by Rs 5.
Following that, in the spot market prices for soyabean, sunflower and rapeseed oil declined by Rs 5 for 10 kg each while palmolein and cotton refined oil dropped by Rs 2 each.
During the day, hardly 100-150 tonnes of palmolein were sold in resale at Rs 525-527. About 80-100 tonnes of soyabean refined oil were sold by Ruchi at Rs 645.
Edible oils are seen bearish in the near term given the higher plantings of oilseeds and the approaching of peak production season in palm oil growing nations.
Towards the day’s close, Liberty was quoting palmolein at Rs 533-535, super palmolein Rs 570 for July-August and super deluxe Rs 590. Ruchi quoted palmolein at Rs 538 for July-August-September, soyabean refined oil at Rs 645 for July, Rs 650 for August and sunflower refined oil Rs 810 for July-August. Allana was quoting palmolein at Rs 533-536 and super palmolein Rs 570. Gokuls’ palmolein’s rates were Rs 535. Resellers were quoting Rs 525-526.
Soyabean arrivals at the national level were about 95,000 bags and its prices were Rs 3,500-3,600 ex mandi and Rs 3,725-3,775 for plant delivery. Mustard seeds arrivals were 85,000 bags and the prices were Rs 3,070-3,600.
Malaysia BMD crude palm oil’s August contracts was lower by 27 to MYR 2,258, September by 31 to MYR 2,242 and October by 36 to MYR 2,227 a tonne.
The Bombay Commodity Exchange spot rates (Rs/10 kg) were: groundnut oil 1,000 (1,000), soya refined oil 650 (655), sunflower exp. ref. 750 (755), sunflower ref. 810 (815), rapeseed ref. oil 685 (690), rapeseed expeller ref. 655 (660) cottonseed ref. oil 650 (652) and palmolein 528 (530).
Vikram Global Commodities (P) Ltd quoted Rs 570/10 kg for Malaysian super palmolein - July delivery.