Barring groundnut oil which declined by Rs 5 for 10-kg, all other edible oils extended gain on Tuesday. Price hike by local refiners and lack of rain in producing areas and concerns about the new crop pushed up prices higher.
Local demand was poor and speculators preferred profit booking at higher price. Sentiment was slightly weak after lower closing of Malaysian palm oil futures.
In spot markets, imported palmolein and soya oil rose by Rs 2 and Rs 5 each for 10 kg, while rapeseed and cotton refined oil increased by Rs 7 and Rs 4 each. Sunflower oil was up by Rs 10. Malaysian crude palm oil futures declined on Tuesday on weak palm oil exports during 1-10, although losses were capped by dry US weather potentially hurting soyabean output. Malaysian palm oil exports for the first 10 days of July slipped 13.5 per cent from a month ago, said cargo surveyor Intertek Testing Services. A total of 363,975 tonnes of the commodity were tracked, versus 420,592 tonnes in the same period last month, Intertek said.
A wholesaler said in absence of fresh demand at local level volume was thin. About 80 – 100 tonnes of Palmolein was resale traded in the range of Rs 618-620. Domestic refiners continued price hike in line with import parity and expecting higher demand coming days for Ramzan this month and other festivals during August – September. Unfavourable weather in India could crimp domestic oilseed production and will import more cooking oil during peak festivals season he said. Towards the end of the day, Liberty quoted palmolein at Rs 629-630, Super palmolein at Rs 662, Soya oil at Rs 760 and Sunflower refined oil at Rs 755. Ruchi quoted palmolein at Rs 622 for July and Rs 629-632 for August. Soya refined oil at Rs 755 for July and Rs 760 for August. Sunflower refined oil at Rs 750-755. Allana’s rate for Palmolein was Rs 627. Mewah, Bunge and Vaibhavi’s rate for Palmolein was Rs 625- 627. In Saurashtra-Rajkot, groundnut oil dropped by Rs 40 to Rs 1,830 for Telia tin and by Rs 10 to Rs 1,200 for loose - 10kg.
Malaysia's crude palm oil August contracts settled lower at MYR 3,126 (MYR 3,142), September at MYR 3,130 (MRY 3,153) and October at MYR 3,136 (MYR 3,155) a tonne. The Bombay Commodity Exchange spot rates were (Rs/10 kg): groundnut oil 1,185 (1,190), soya refined oil 752 (747), sunflower exp. ref. 685 (675), sunflower ref. 755 (745), rapeseed ref. oil 860 (853), rapeseed expeller ref. 830 (823) cotton ref. oil 722 (718) and palmolein 622 (620).