MARKET DEVELOPMENT
Edible Oils Market Grinds To A Halt
Edible Oils Market Grinds To A Halt
31/08/2013 (Hindu Business Line) - Edible oils market witnessed a bearish trend on Friday, tracking weak futures market and lack of demand.
A rebound in the domestic currency against the dollar also weighed in.
There was virtually no activity in the physical market due to lack of demand, said a leading broker. This is because of sudden drop in prices, giving rise to speculation that more fall in prices is on cards.
In the absence of demand, prices for palmolein and soyabean refined oil declined by Rs 18 and Rs 13 each for 10 kg. Cotton refined oil dropped by Rs 11. Groundnut and sunflower oils ruled unchanged.
Shailesh Kataria of Ridhi Brokers told Business Line that weakness in futures markets, absence of demand and decline in value of dollar in the last two days pulled down imported edible oils prices in domestic markets. This month, edible oil prices rose continuously tracking weak rupee and bullish Malaysia palm oil and Chicago soya futures markets.
An analyst said that Malaysian palm oil futures edged lower as investors booked profits from a recent rally fuelled by fears of dry weather in the soya-producing US Midwest.
Liberty quoted palmolein at Rs 620, super palmolein Rs 650 and super deluxe Rs 670, soyabean refined oil Rs 715 and sunflower refined oil Rs 850.
Ruchi quoted palmolein Rs 610 ex-JNPT, soyabean refined oil Rs 700 and sunflower refined oil Rs 841.
Allana quoted palmolein Rs 618, super palmolein Rs 645, soyabean refined oil Rs 710 and sunflower refined oil Rs 840. Gokul’s rate was Rs 595.
In Rajkot, groundnut oil ruled steady at Rs 1,255 (Rs 1,255) for telia tin and loose (10 kg) Rs 800 (Rs 800).
Soyabean arrivals were 45,000 bags at Rs 3,600-3,700 ex- mandi and Rs 3,700-3,800 for plant delivery.
Mustard seed arrivals were 50,000 bags and were Rs 3,400-3,700. On the National Commodities and Derivatives Exchange, soyabean refined oil’s September futures extended lose further by Rs 11.65 to Rs 704.40 (Rs 716.05), October down by Rs 12.80 to Rs 680.30 (Rs 693.10) and November declined by Rs 13.10 to Rs 672.50 (Rs 685.60).
Malaysia BMD crude palm oil’s September contracts settled lower at MYR 2,407 (MYR 2,444), October at MYR 2,404 (MYR 2,444) and November at MYR 2,404 (MYR 2,440).
The Bombay Commodity Exchange spot rates (Rs/10 kg) were: Groundnut oil 850 (850), soya refined oil 700 (713), sunflower exp. ref. 755 (760), sunflower ref. 840 (835), rapeseed ref. oil 743 (740), rapeseed expeller ref. 713 (710) cottonseed ref. oil 682 (693) and palmolein 602 (620).
Vikram Global Commodities (P) Ltd quoted Rs 665 for 10 kg - for Malaysia super palmolein for September delivery.
A rebound in the domestic currency against the dollar also weighed in.
There was virtually no activity in the physical market due to lack of demand, said a leading broker. This is because of sudden drop in prices, giving rise to speculation that more fall in prices is on cards.
In the absence of demand, prices for palmolein and soyabean refined oil declined by Rs 18 and Rs 13 each for 10 kg. Cotton refined oil dropped by Rs 11. Groundnut and sunflower oils ruled unchanged.
Shailesh Kataria of Ridhi Brokers told Business Line that weakness in futures markets, absence of demand and decline in value of dollar in the last two days pulled down imported edible oils prices in domestic markets. This month, edible oil prices rose continuously tracking weak rupee and bullish Malaysia palm oil and Chicago soya futures markets.
An analyst said that Malaysian palm oil futures edged lower as investors booked profits from a recent rally fuelled by fears of dry weather in the soya-producing US Midwest.
Liberty quoted palmolein at Rs 620, super palmolein Rs 650 and super deluxe Rs 670, soyabean refined oil Rs 715 and sunflower refined oil Rs 850.
Ruchi quoted palmolein Rs 610 ex-JNPT, soyabean refined oil Rs 700 and sunflower refined oil Rs 841.
Allana quoted palmolein Rs 618, super palmolein Rs 645, soyabean refined oil Rs 710 and sunflower refined oil Rs 840. Gokul’s rate was Rs 595.
In Rajkot, groundnut oil ruled steady at Rs 1,255 (Rs 1,255) for telia tin and loose (10 kg) Rs 800 (Rs 800).
Soyabean arrivals were 45,000 bags at Rs 3,600-3,700 ex- mandi and Rs 3,700-3,800 for plant delivery.
Mustard seed arrivals were 50,000 bags and were Rs 3,400-3,700. On the National Commodities and Derivatives Exchange, soyabean refined oil’s September futures extended lose further by Rs 11.65 to Rs 704.40 (Rs 716.05), October down by Rs 12.80 to Rs 680.30 (Rs 693.10) and November declined by Rs 13.10 to Rs 672.50 (Rs 685.60).
Malaysia BMD crude palm oil’s September contracts settled lower at MYR 2,407 (MYR 2,444), October at MYR 2,404 (MYR 2,444) and November at MYR 2,404 (MYR 2,440).
The Bombay Commodity Exchange spot rates (Rs/10 kg) were: Groundnut oil 850 (850), soya refined oil 700 (713), sunflower exp. ref. 755 (760), sunflower ref. 840 (835), rapeseed ref. oil 743 (740), rapeseed expeller ref. 713 (710) cottonseed ref. oil 682 (693) and palmolein 602 (620).
Vikram Global Commodities (P) Ltd quoted Rs 665 for 10 kg - for Malaysia super palmolein for September delivery.