Imported palmolein and soyabean refined oil rose by Rs 3 and Rs 2 for 10 kg each on bullish futures on Friday. The Malaysian palm oil market was closed due to holiday but firm projection of Chicago soya oil pushed domestic soyabean oil futures by Rs 12-15 for 10 kg for March-April. Traders continued fresh buying on demand. Spot cottonseed refined oil increase by Rs 4 for 10 kg, while groundnut oil, rapeseed oil and sunflower oil ruled steady. Groundnut oil in Saurashtra dropped further by Rs 20 for a 15-kg telia tin on higher sales.
“Weather concerns in Argentina for the soya crop pushed up Malaysian palm oil futures to their highest in more than three months on Thursday, apart from better-than-expected exports,” said Shailesh Kataria of Riddhi Brokers.
Demand is shifting to palm oil, which is $300 a tonne cheaper than soya oil. Malaysia’s January palm oil exports fell marginally from a month ago and showed a significant improvement from a double-digit decline earlier in January.
In the local market, stockists continued buying on expectation of higher demand. They covered 1,650-1,700 tonnes of palmolein on Friday, taking total volume traded to 5,000-5,500 tonnes in the last three days. During the day, Liberty sold 1,100-1,200 tonnes of palmolein at Rs 515-517 and 200-250 tonnes of super palmolein at Rs 560-562. Resellers offloaded about 200-250 tonnes of palmolein at Rs 511 (excluding Jawaharlal Nehru Port Trust).
Towards the end of the day, Liberty was quoting palmolein at Rs 517 for delivery on February 27, super palmolein at Rs 562, soya refined oil at Rs 730 and sunflower refined oil at Rs 800. Ruchi quoted palmolein at Rs 517-521, soyabean refined oil at Rs 721 and sunflower refined oil at Rs 800. Allana offered palmolein at Rs 516 and super palmolein at Rs 562. In Saurashtra and Rajkot, groundnut oil dropped to Rs 1,930 (Rs 1,950) for a 15-kg telia tin and was unchanged at Rs 1,270 for loose (10 kg).
On the National Commodities and Derivatives Exchange, soyabean refined oil’s February contract extended gains to Rs 749 (Rs 737.35), March to Rs 729.60 (Rs 714.50) and April to Rs 719.50 (Rs 702.50).
The Bombay Commodity Exchange spot rates (Rs/10 kg): groundnut oil 1,280 (1,280), soya refined oil 720(718), sunflower exp. ref. 720 (720), sunflower ref. 800 (800), rapeseed ref. oil 807 (807), rapeseed expeller ref. 777(777) cottonseed ref. oil 622 (618) and palmolein 510 (507).