Commodities

Edible oil price rise continues

Our Correspondent Mumbai | Updated on July 21, 2011

BL22_COM2_E_OIL

Edible oil prices continued to rise on Thursday, despite lower closing of Malaysian palm oil after rising for two consecutive days.

Groundnut oil jumped by Rs 10/10 kg, tracking a price spurt in Saurashtra market. Cotton oil increased by Rs 5. Palmolein and soya oil rose by Rs 9 and Rs 2 each as local refineries increased their selling rates sharply. Lack of resales in market supported the price hike and kept volumes negligible. Bursa Malaysia Derivatives crude palm oil (CPO) futures closed lower in tepid trade as investors' booked profits after two consecutive days of gains. Traders may be liquidating risky positions ahead of a key production and price forecast by analyst Mr Dorab Mistry, said a broker.

According a leading broker, in the absence of fresh local demand, a sudden price hike by refineries and easing resale selling pressure at lower rates, kept business activities at a low key on Thursday.

Refineries have increased their rates for palmolein and soya oil in range of Rs 6/Rs 2 for 10 kg. Lower consumption/retail demand due to month-end period and rainy season kept traders away from fresh buying.

Weak foreign market and clear weather in most of the producing centres increased the expectation of improvement in arrivals. In the beginning of the week, stockists covered good quantity for August deliveries hence they kept away.

In the absence of demand, merely 50-70 tonnes of palmolein were resale traded in the range of Rs 550-551. Towards the day's close, resellers quoted at Rs 552-553. Liberty quoted palmolein at Rs 556, soya oil at Rs 647. Ruchi's rate for palmolein was Rs 554, soya refined oil Rs 644 and sunflower oil Rs 697. Allana's palmolein was offered at Rs 556.

In indigenous oils, rapeseed oil corrected by Rs 3 after continue rise of Rs 28 for 10 kg, in last seven days as speculators book profits.

Groundnut oil and cotton oil rose tracking firm trend at producing centres where after rain clear weather condition attracted fresh buying.

Less than expected arrivals of seeds and lack of selling due to higher parity were the supporting factors for price rise.

In Rajkot – Saurashtra, groundnut oil price jumped up by Rs 25 to Rs 1,510 (Rs 1,485) for Telia tin and loose – 10 kg rose by Rs 20 to Rs 985 (Rs 965). BMD CPO futures August contracts closed at MYR 3133 (3157), September at 3131 (3155) and October at 3130 (3153) a tonne. Bombay Commodity Exchange spot rate (Rs/10kg): Groundnut oil 970 (960), Soya refined oil 646 (644), Sunflower exp. ref. 655 (655), Sunflower ref. 710 (710), Rapeseed ref. oil 690 (693), Rapeseed expeller ref. 660 (663), Cotton ref. oil 665 (660) and Palmolein was 553 (544).

Published on July 21, 2011

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