Edible oils rose on Thursday tracking as Malaysian palm oil rebounded and futures markets turned bullish. Imported palmolein and soya oil rose by Rs 3 and Rs 5 for 10 kg each. Indigenous sunflower oil, cottonseed oil and rapeseed oil increased by Rs 5, Rs 2 and Rs 4 for 10 kg each, respectively. Groundnut oil edged up by Rs 10 for 10 kg tracking a jump of more than Rs 30 in Saurashtra on shortage of nuts for crushing.
Volume increased sharply as stockists covered for forward delivery expecting higher festival demand, while ready demand was thin. Malaysian crude palm oil futures bounced back on Thursday as exports staged a tentative recovery. The market rose after prices hit a near 10-month low on Tuesday. Palm oil export data on Wednesday showed signs of recovery for the first half of August, signalling stocks could come under pressure after hitting a five-month high in July. Malaysia’s palm oil exports showed signs of recovery after declines in July, bringing some cheer to the market that has lost almost 10 percent this year.
A commodity analyst said some traders who shorted a few days ago may have booked profits. Traders avoided taking risky positions ahead of a long weekend as Malaysian markets will be closed on Monday and Tuesday for Eid. Deficit rain and a possible delay in new crop arrivals are supporting the market. Totally, 1,400-1,500 tonnes of palmolein were traded for delivery up to September. According to trade estimates, Ruchi sold 300-400 tonnes at Rs 608, Liberty sold 900-1,000 tonnes at Rs 609-611 including volumes of stock transfer covering from Gujarat. At the close of the day, Liberty quoted palmolein at Rs 609-610, super palmolein at Rs 650, soya oil at Rs 748-750 and sunflower refined oil at Rs 773. Ruchi quoted palmolein at Rs 608, soya refined oil at Rs 745-748, sunflower refined oil at Rs 770-773. Allana offered palmolein at Rs 610 and super palmolein at Rs 650. In Saurashtra and Rajkot, groundnut oil was Rs 1,915 (Rs 1,875) for a telia tin and Rs 1,260 (Rs 1,230) for loose (10 kg).
On the National Board of Trade in Indore, soya refined oil for September delivery closed at Rs 795 (Rs 791).
Malaysia’s crude palm oil’s September contracts closed at MYR 2,860 (MYR 2,811), October at MYR 2,910 (MYR 2,862) and November at MYR 2,942 (MYR 2,901) a tonne.
The Bombay Commodity Exchange spot rates (Rs/10 kg): groundnut oil 1,230 (1,220), soya refined oil 745 (740), sunflower exp. ref. 705 (705), sunflower ref. 770 (765), rapeseed ref. oil 884 (880), rapeseed expeller ref. 854 (850) cottonseed ref. oil 742 (740) and palmolein 608 (605).