Edible oils gain on cues from futures

Edible oil prices on Monday show a mixed trend, as imported oil soyabean oil and palmolein increased by Rs 7 and Re 1 for 10 kg on cues from higher Indore NBOT futures. A weak trend was seen in global markets. Indigenous edible oils groundnut oil, cotton refined oil and sunflower oil ruled steady. Rapeseed oil declined by Rs 4. In absence of local demand, the trading volume was thin. Late in the evening, stockists turned sellers in resale at lower rates, said a leading trader.

Malaysian crude palm oil futures ended lower on Monday tracking the fall in Chinese agricultural commodities amid concerns about its monetary tightening after the world's biggest edible oils consumer hiked banks' reserve requirement ratio last week. A leading broker said that despite weak foreign markets, Indore NBOT soyabean oil futures went up on speculative buying that supported the spot market price but there were no buyers on the spot due to absence of fresh demand. Most of the stockists were interested in taking the deliveries of outstanding and were not ready buy fresh stocks.

About 40-50 tonnes of Palmolein were traded in resale at Rs 585 compared with direct refineries rates of above Rs 600.

There were no buyers for indigenous oil as, producing centres specially Gujarat, Maharashtra and Karnataka line saw selling in groundnut oil, cotton and sunflower oil. Direct importers were quoting higher rates with Liberty rates of palmolein being Rs 602-605, Ruchi quoted palmolein at Rs 600-602, soya refined oil Rs 625-630 and sunflower refined oil at Rs705. Allana's rates for Palmolein were Rs 602. In Rajkot market, groundnut oil dropped by Rs 10 to Rs 1,155 (Rs 1165) for Telia tin and Rs 745 (Rs 755) for 10 kg in loose.

Malaysia's crude palm oil March contracts closed at MYR 3,726 (3,755 and April at MYR 3,707 (3,734). Mumbai commodity exchange spot rate (Rs/10 kg): Groundnut oil 755 (755), soya refined oil 620 (613), sunflower expeller refined 665 (665), sunflower refined 710 (710), rapeseed refined oil 645 (649), rapeseed expeller refined 615 (619), cotton refined oil 620 (620) and palmolein was 588 (587).