Most edible oils extended last week’s gain on firm reports from abroad and from domestic producing centres. Concern that erratic monsoon may delay the kharif crops pushed up prices. Imported palmolein and soya oil rose by Rs 2 for 10 kg each while rapeseed and cottonseed refined oil increased by Rs 3 for 10 kg each. Sunflower refined oil was up by Rs 5 for 10 kg.
Malaysian crude palm oil futures rose on worries unfavourable weather in many parts of the world could crimp oilseed production and tighten global cooking oil supply during peak festivals season. Due to rains volume was need-based but expected higher demand for Ramzan will keep market firm in the medium term. About 1,100-1,200 tonnes of palmolein and sunflower oil were traded during the day, said sources.
A broker said in absence of monsoon in main oilseeds-producing States, such as Maharashtra, Gujarat and Madhya Pradesh, may hit kharif output and strengthen the bullish market sentiment. According to official data, area covered under oilseeds was 10.8 per cent less at 26.55 lakh hectors compare with 37.37 lakh hectares last year till July 6. Erratic monsoon will delay the new season by a month.
Market sources said tracking firm Malaysian and domestic futures markets domestic refiners hiked prices of imported oils. Stockist continued covering quality stocks to meet the expected higher demand during upcoming festivals. Liberty sold about 500-600 tonnes of palmolein at Rs 624-628. About 100-150 tonnes of palmolein was traded in the resale market at Rs 619-620. Ruchi sold about 350-400 tonnes of sunflower oil at Rs 746-747. Liberty quoted super palmolein at Rs 660, soya oil at Rs 760 and sunflower refined oil at Rs 755. Ruchi quoted palmolein at Rs 625 for July and at Rs 629-632 for August; soya refined oil at Rs 752 for July and Rs 755 for August; and sunflower refined oil at Rs 748-753. Allana offered palmolein at Rs 625 for delivery between July 25 and August 5. In Saurashtra and Rajkot, groundnut oil dropped by Rs 10 each to Rs 1,870 for a telia tin and to Rs 1,210 for loose (10 kg).
Malaysia’s crude palm oil’s August contracts settled at 3,142 (MYR3,110) and September at MYR3,153 (MYR3,130) a tonne. On the National Board of Trade in Indore, soya refined oil for July delivery closed at Rs 778 (Rs 766.80) and for August at Rs 793 (Rs 781.10).
The Bombay Commodity Exchange spot rates (Rs/10 kg): groundnut oil 1,190 (1,190), soya refined oil 747 (745), sunflower exp. ref. 675 (675), sunflower ref. 750 (745), rapeseed ref. oil 853 (850), rapeseed expeller ref. 823 (820) cottonseed ref. oil 718 (715) and palmolein 620 (618).