Groundnut oil ruled steady due to less-than-expected demand while cottonseed oil prices increased marginally by Rs 5 a tin. Poor local demand kept volumes at a bare minimum.

Groundnut oil traded at Rs 1,275-1,280 a 15 kg tin in Rajkot and Saurashtra. Groundnut oil for 10 kg loose was quoted at Rs 720-725. Cotton seed oil gained marginally by Rs 5 a tin. Cotton seed wash price was at Rs 580-583 per 10 kg tin and for 15-kg tin prices increased by Rs 5 to Rs 1000-1010.

Cotton prices resumed their rally on Tuesday on lower arrivals and strong demand. Prices in Rajkot increased for raw cotton to Rs 5,750 a quintal.

Mr Atul Patel of Mahendra Oil Industries from Rajkot said: “Currently market is based on retail buyers for groundnut oil. Prices will not fluctuate much. Groundnut oil will be range-bound with a gain or loss of Rs 10 to 20 per tin in the coming days.”

He said that cottonseed oil prices have gone up on the back of rising cotton price. It may increase further but not much as there is low demand for it in the market.”

Availability of the raw material is adequate for groundnut oil as production of groundnut hasincreased this year. In the beginning of January, groundnut oil prices increased as branded companies were buying heavily.

In Andhra Pradesh, groundnut was quoted at Rs 2,750 a quintal on steady arrivals. Prices have been ruling around this level for the last couple of sessions.

Daily arrivals of groundnut in Karnataka, Andhra Pradesh, Maharashtra and Gujarat is around 1.50 lakh bags.

On Tuesday, the edible oil market was left with little cues as the Malaysian market, which is the reference point for traders here, was ahead of the Lunar New Year holiday.

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