13/01/2012 (Hindu Business Line) - Imported palmolein and soya oil declined by Rs 3 and Rs 5 for 10 kg, respectively, in Mumbai on Thursday. Absence of new demand and a weak foreign market keep stockists away from fresh bet. Malaysian BMD CPO futures closed lower by 27, 31 and 19 ringgits a tonne on weak global cues and lower demand at higher prices.

Sources said along with imported oils, cotton refined oil dropped by Rs 5 for the second consecutive day. Sunflower and rapeseed oil ruled unchanged, while groundnut oil rose by Rs 5 in the absence of sellers and on worries of thin arrival of seeds from the main producing area of Saurashtra until the weekend due to Makar Sankranti festival.

An analyst said Malaysian BMD CPO futures fell amid concerns that Chinese demand during the Lunar New Year may fall. Meanwhile, China's January soyabean imports will likely stand at 4.3 million tonnes, a 20.6 per cent decline from December, the State-backed China National Grain and Oils Information Centre said. The Ministry of Commerce on Thursday put the January figure at 4.57 million tonnes. China's soyabean imports fell 3.9 per cent in 2011 to 52.64 million tonnes, marking the first decline since 2004, data from the General Administration of Customs showed Tuesday.

Palmolein resale
A local wholesaler said that after active business for two days, volume was negligible on Thursday due to overall bearish reports from abroad. Reselling at lower rates and price reduction by local refineries curtailed fresh buying for palmolein. On the two previous days, 2,000 tonnes of palmolein was traded for ready-and-forward delivery.

As Makar Sankranti will be celebrated on Saturday, farm arrivals will fall sharply until the weekend. Most of the mandis will be closed on Saturday. Arrival may increase on Friday. Local refineries have reduced palmolein price by Rs 2-3, partly tracking weak Malaysian palm oil. Sentiment turned bearish as Liberty has started quoting ready delivery. Merely 100-150 tonnes of palmolein was traded in resale at Rs 594-595.

Liberty quoted Rs 594-596 for ready delivery and Super palmolein Rs 622 for January. Ruchi quoted Rs 586 for February and Rs 588 for March. Allana's palmolein quoted Rs 595 for February 5-15. Mewah quoted palmolein Rs 600 for January 20 and Super palmolein Rs 620.

In Saurashtra–Rajkot, cotton oil was Rs 627-628 and groundnut oil was Rs 1,575 (Rs 1,575) for Telia tin; and Rs 1,025 (Rs 1,025) for loose 10kg.

Malaysian BMD CPO's futures February-12 closed at 3,220 ringgits (3,237), March-12 3,202 ringgits (3,233) and April-11 3,209 ringgits (3,228) a tonne. Soya oil February-12 futures closed sharply higher at Rs 729.50 (Rs 722) on the National Board of Trade in Indore.

Bombay Commodity Exchange spot rates (Rs/10 kg): Groundnut oil 1,010 (1,005), soya refined oil 695 (700), sunflower expeller refined 650 (650), sunflower refined 725 (730), rapeseed refined oil 820 (820), rapeseed expeller refined 790 (790), cotton refined oil 650 (655) and palmolein 597 (600).