Groundnut oil dips on higher supply of nuts

Groundnut oil lost ground, declining sharply by Rs 15 for 10 kg in the edible oil market on bearish reports from Saurashtra. While palmolein and rapeseed oil dropped by Rs 5 each, soya and sunflower oil ruled steady, tracking the extended decline in the Malaysian market.

In the absence of active demand, the sentiment was weak. In-ready market, the volume was negligible as stockists kept away from fresh bets. Malaysian palm oil extended its losses further on selling pressure. The total decline in the last three days is over 110 ringgits.

Dull phase

Mumbai-based wholesalers said the edible oil market is currently passing through a dull phase with the absence of demand. For indigenous oils, higher arrivals of groundnut in Gujarat and southern States, of rapeseed in Rajasthan and Gujarat, and of soyabean in Madhya Pradesh and Maharashtra weighed on the sentiment despite deficient monsoon.

Traders booked the required quantities in advance last month at higher rates. This has kept them from unloading the stocks and resorting to fresh buying.

According to sources, in the absence of fresh demand, the volume was almost negligible. A mere 50-60 tonnes of palmolein was traded in resale. Resellers quoted Rs 540-542.

While Liberty quoted palmolein at Rs 546-547, Ruchi's rate was Rs 544. Ruchi's soya refined oil was Rs 621 and sunflower oil Rs 683. Allana sold palmolein at Rs 542.

In the Rajkot market, groundnut oil in telia tin lost Rs 55 at Rs 1,410 (Rs 1,465), and loose ( 10 kg) was down by Rs 35 to Rs 915 (Rs 950).

Demand for HPS groundnut for exports declined sharply this week, leading to higher availability for crushing mills. According to sources, export of HPS groundnuts from Pipavav port came to a standstill due to cargo checking. Exports from the Mundra port also eased.

Palm oil prices in the Malaysian market have come under pressure following rising output and expanding inventory, matched by sluggish demand from importing nations.

Malaysia's crude paom oil July futures closed at 3,138 (3,169) ringgit a tonne, August-11 at 3,116 (3,154), and September-11 at 3,117 (3,136).

Mumbai commodity exchange spot rate (Rs/10 kg): Groundnut oil, 945 (960); soya refined oil, 625 (625); sunflower exp. ref., 635 (640); sunflower ref., 690 (690); rapeseed ref. oil, 668 (673); rapeseed expeller ref., 638 (643); cotton ref. oil, 637 (635); and palmolein, 543 (548).
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