Edible oils prices ruled weak on Monday due to lack of demand and bearish futures market. Imported palmolein dropped by Rs 4 and soyabean refined oil declined by Rs 5 for 10 kg. Cotton refined oil lost Rs 5, tracking bearish reports from producing centres. Groundnut oil, which made a further loss of Rs 20 in Saurashtra, ruled steady in local market. Rapeseed and sunflower oils were unchanged.
The Malaysian market was closed for a holiday.
According to Shailesh Kataria, the market witnessed good volumes last week due to improved local demand ahead of Ganeshotsav. After sufficient covering, stockists kept away from fresh buying on Monday, tracking weak futures market.
Fundamentally, palm oil stocks are high in Malaysia and production is increasing. It will peak in October.
5% RISE IN STOCKS
Some traders have estimated that palm oil inventories in Malaysia could rise by a further 5 per cent by the end of this month. Sources said that at the close of market, Libertyquoted palmolein at Rs 595-598; super palmolein Rs 640; soya oil Rs 765 and sunflower refined oil Rs 785; Ruchi quoted palmolein Rs 593-598; super palmolein Rs 637-641; soya refined oil Rs 761 and sunflower refined oil Rs 781. Allana’s rate for palmolein was Rs 595 and Vaibhavi Rs 593. Resellers were quoting palmolein at Rs 590-591 for JNPT. In Saurashtra-Rajkot, groundnut oil dropped further by Rs 30 to Rs 1,740 (Rs 1,770) for Telia tin and declined by Rs 20 to Rs 1,130 (Rs 1,150) for loose 10 kg.
The Bombay Commodity Exchange spot rates were (Rs/10 kg):
Groundnut oil 1,160 (1,160), soya refined oil 760 (765), sunflower exp. ref. 730 (725), sunflower ref. 780 (785), rapeseed ref. oil 870 (870), rapeseed expeller ref. 840 (840) cotton ref. oil 744 (749) and palmolein 594 (598).
