Mumbai (commoditiescontrol) - RBD palmolein traded weak during the week tracking bearish cues of Malaysian Palm Oil Futures which closed 2.90 percent lower amid improving production of palm oil in Malaysia and Indonesia.
Outlook for RBD palmolein is seen dismal as South Peninsula Palm oil Millers Association (SPPOMA) have estimated palm oil output recovering by 41 percent for July month during same period of the last year.
Indonesia palm oil production is estimated to reach 36.50 million tons in the marketing year 2017-18, which runs from October 2017 to November 2018, from 34 million tons in 2016-17 underpinned by benign weather conditions, according to USDA Jakarta bureau. The bureau also increased Indonesia palm export to 26.50 million tons in 2017-18, just 1.0 million tons higher than the USDA's official estimate.
On biodiesel the report notes industrial consumption is estimated to be up to 3.70 million tons, following Ministry of Energy and Mineral Resources (MEMR) data which showed biodiesel production increasing. 2017-18 industrial biodiesel consumption was estimated at 3.80 million tons, up from 3.70 million tons in 2016-17.
Further, market is waiting the Malaysia palm oil export data of Aug 1-10 period and MPOB palm oil supply and demand report which will be released on August 10.
In domestic market, traders opted to do the need based buying, on anticipation of price declining in coming weeks. Edible oil availability at the various ports in India is sufficient to meet the demand.
Meanwhile, RBD palmolein prices dropped USD 20 to trade at 665/tonne percent at Kandla port in dollar terms (CIF) this week, while declined by Rs 10 to trade at Rs 525/10kg in rupee term.
NEXT WEEK: RBD Palmolein market may trade with a bearish bias ahead of industry demand-supply data from MPOB and August 1-10 palm oil export data from cargo surveyors.
(By Commoditiescontrol Bureau; +91-22-40015533)
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