Edible oils extended gains despite low volumes on Monday. Expectations of seeds supplies for crushing being tight and demand rising at the lower prices lifted the physical markets. Domestic soya oil and Malaysian palm oil futures closed slightly higher.
In the spot market, groundnut oil and soyabean refined oil were up Rs 5 for 10 kg each. Rapeseed oil rose by Rs 2 and cotton refined oil by Rs 3. Palmolein and sunflower oil ruled unchanged. Malaysian palm oil futures extended gains after rebounding on Friday from Thursday’s three-year low riding on substitute soyabean oil’s gains after US soya crushing data sent soyabeans to a six-week peak.
A Mumbai-based broker said in low demand kept volumes subdued. Last week, traders purchased sufficient stocks at the lower prices. Palmolein at Rs 470 price looks attractive. Besides, the more than Rs 200 price difference between it and other oils will push up demand for the cheaper palmolein. Ruchi sold 200-250 tonnes of palmolein at Rs 480. Liberty sold about 40-50 tonnes of super palmolein at Rs 537. Resellers offloaded 80-100 tonnes of palmolein at Rs 475-478 in the ready market.
In Saurashtra and Rajkot, groundnut oil ruled unchanged at Rs 1,980 for a telia tin and at Rs 1,290 for loose (10 kg). Towards the close of the day, Liberty was quoting palmolein at Rs482-484, super palmolein at Rs 537, soya refined oil at Rs 692 and sunflower refined oil at Rs 785. Ruchi quoted palmolein at Rs 480, soyabean refined oil at Rs 690, sunflower refined oil Rs 780. Allana was offering palmolein at Rs 478 and super palmolein at Rs 535.
A commodity analyst said gains in Malaysian crude palm oil futures was limited, as concerns over high stockpiles remained, especially as the latest data pointed to signs of slowing exports. On the National Commodities and Derivatives Exchange, soyabean refined oil’s January contracts were up to Rs 714.85 (Rs 712.65), February to Rs 702.60 (Rs 701.65) and March to Rs 697.10 (Rs 695.35).
Malaysia’s crude palm oil’s January contracts settled higher at MYR2,197 (MYR2,190), February at MYR2,280 (MYR2,275) and March at MYR2,350 (MYR2,346) a tonne.
The Bombay Commodity Exchange spot rates (Rs/10 kg): groundnut oil 1,260 (1,255), soya refined oil 690 (685), sunflower exp. ref. 710 (710), sunflower ref. 785 (785), rapeseed ref. oil 807 (805), rapeseed expeller ref. 777 (775), cottonseed ref. oil 625 (623) and palmolein 475 (475).