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MUMBAI (commodities control) - Domestic RBD Palmolein was mostly lower during the week ended Saturday 3rd June, largely pressured by weak Malaysian Palm Oil futures.
Malaysian Palm oil futures closed down 0.80 percent down at MYR 2,496/tonne this week on weakness in competing soy bean oil prices. Trading volumes were thin as investors remained on sidelines.
Southern Peninsular Palm Oil Millers Association (SPPOMA) reported first significant rise in production for May with a rise of 5.75% for the period 1-31 May versus same time last month. Improvement in the latest SPPOMA data should give a lift to peninsular Malaysia production.
Estimates released Wednesday by cargo surveyors Intertek Agri Services and SGS (Malaysia) for the month of May showed palm oil exports rose more than 15%. That elevated the mood of the market on lower levels.
On domestic front their is sufficient stock with the traders to meet the near term demand, moreever they have been on the sidelines from making any bulk purchases on anticipation of drop in RBD Palmolein prices on higher production from the producing regions.
RBD Palmolein prices at Kandla port declined by Rs 10 to trade at Rs 550/10kg during the week, and also prices have edged lower by USD 17 to trade at USD 715 per tonne.
Import of RBD palmolein is costlier by Rs 2/10kg which is nominal and if the Malaysian palm oil prices fall further in coming week then the import might get cheaper which will further pressurise palm oil prices.
On the local bourses, the most-active June RBD Palmolein contract declined 0.57 percent or Rs 3.10/10kg to close at Rs 536.70/10kg on the National Commodity & Derivatives Exchange Ltd. The contract during the week traded in the range of 536.70-540
NEXT WEEK: RBD Palmolein prices trade in a bear trend on account of improving production in Malaysia and Indonesia.
(By Commodities control Bureau; +91-22-40015516)
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