MUMBAI (Commoditiescontrol) - A downtrend was seen in edible oil market this week on outlook of high supply globally.
CRUDE PALM OIL:
Crude Palm oil dropped this week largely pressured on sign of slow demand coupled with rising production of edible oil globally mainly in Indonesia & Malaysia and large supplies of other edible oils.
The focus next week will be on the release of Malaysia Palm export estimates for April as market participants look to see whether demand holds up.
Indonesia's crude palm oil (CPO) output rose in March after falling for the previous three months, as better weather improved output, a Reuters survey showed production in Indonesia, the world's top producer of the widely-used cooking oil, likely to rise 3.08 million tonnes in March from 2.80 million tonnes in February, according to the median estimate in a survey of two industry associations and a state palm research firm.
CPO production in March started to show improvement due to good rain fall late in 2016 up to March. Meanwhile, Indonesian CPO exports were estimated to have dropped last month to 2.09 million tonnes, from 2.41 million tonnes in February.
In domestic market, traders opted to stay away from market on anticipation of further price fall on big surplus, while demand may get some boost from May 10th with the onset of Ramadan.
RBD Palmolein prices was higher 0.42 percent at Rs 705 per tonne at kandla port in dollar terms (CNF) this week, while prices were down 0.36 percent at Rs 550/10kg in Rupee terms.
In futures market, Malaysian crude palm oil benchmark June contract close up 0.76 percent, while at local bourses most active May contract on Multi Commodity Exchange (MCX) close higher 1.41 percent and June contract was lower 1.66 percent.
NEXT WEEK: Palm oil market likely to trade on bearish centiment on outlook of high global supply of edible oil.
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