Edible oil prices remained stable in the physical market here today, despite a steep fall in palm oil prices abroad. Traders held stocks in anticipation of a price rise, as the closure of the Mumbai port since the weekend is thought to have squeezed supply in Maharashtra and neighbouring states.
Palm oil closed unchanged at Rs 470 per 10 kg, while profit-booking pulled refined soy oil down to Rs 495 per 10 kg, a Rs 5 decline from the previous day’s close. However, on the benchmark Bursa Malaysia (the country is the world’s second biggest producer, after Indonesia) palm oil recorded the steepest drop in more than a month.
On the Malaysia Derivatives Exchange, October-delivery futures slid as much as two per cent to 2,675 ringgit ($849) a tonne. Prices gained in the previous four days and yesterday reached the highest level since May 13, 2009.
Refined soyoil for delivery in September on the National Commodity and Derivatives Exchange (NCDEX) was down 0.8 per cent at Rs 510.05 per 10 kg.
Two ships collided on Saturday barely three nautical miles away from the Mumbai coast, resulting in oil spills over the west coast. The Mumbai Port Trust announced closure of operations for three days and hoped normality would resume soon. An official from Liberty Oil Mills, one of India’s largest vegetable oil processors, said supply would be hit badly.
“All vegetable oil processing companies will be affected. Mumbai Port handles the equivalent of consumption in Maharashtra, part of Gujarat and Madhya Pradesh,” he said.
“Due to the recent accident near the Mumbai Port Trust area, around 400 containers are estimated to be waiting for berth. Tonnes of import of soy, sunflower and crude palm oil may be delayed by seven days. This may have some pressure on the prices of edible oil in India,” spokesperson from Ruchi Soy Industries said.
