Barring groundnut oil that ruled steady, most edible oils extended gain on Friday. Weak and erratic monsoon pushed up indigenous oil prices higher, while price hike by domestic refineries tracking strong the dollar making import costlier, led imported palmolein and soya oil to increase by Rs 6 and Rs 8 each for 10 kg. Domestic market rose despite decline in Malaysian palm oil and domestic futures. The undercurrent remains firm on weather-driven cues, said sources.

A leading broker said that in absence of active monsoon in main producing States such as Maharashtra, Gujarat, Madhya Pradesh, Rajasthan and southern States traders are concerned about the kharif crops. Even Government is now ready with contingency plan focusing on short-term crops in the States receiving scanty rain.

Monsoon concerns

Erratic monsoon may lead new season to start late by a month and which in turn pushed up price of mustard. Rapeseed oil rose sharply by Rs 27 in a day. Being cheaper, there has been higher demand for cotton refined oil in western part. It rose further by Rs 5. Sunflower refined oil rose by Rs 5.

Malaysian crude palm oil futures eased on Friday as investors turned cautious after European Central Bank's (ECB) and China’s interest rates decision. Speculators booked profits from a weather-fuelled rally earlier in the week. CPO futures closed lower by 36, 34 and 36 ringgits a tonne.

Analyst said the market is in slightly overbought terrain technically and we see some initial profit-taking. Fundamentally, end-stocks in Malaysia are tight while weather remains hot and dry in the US Midwest. The shortfall in India's monsoon rains has widened to nearly 50 per cent of average in the past week, making a revival next week crucial for farmers to sow summer-planted oilseeds crops.

Sources said as stockiest have covered sufficient amount of stocks in previous two to three days, they kept away from fresh bet. The need-based demand volume remains thin. About 80-100 tonnes of palmolein was resale traded at Rs 617 -618.

Prevailing trend

At the end of the day, Liberty quoted palmolein at Rs 623-625, Super palmolein Rs 658, soya oil Rs 755 and sunflower refined oil Rs 755.

Ruchi quoted palmolein at Rs 624 for July and Rs 628-630 for August. Soya refined oil at Rs 755-760. Sunflower refined oil at Rs 747-752. Allana’s rate for palmolein was Rs 623 and Vaibhavi’s rate was Rs 622. In Saurashtra-Rajkot, groundnut oil was up by Rs 10 to Rs 1,880 (Rs 1,870) for Telia tin, and Rs 1,230 (Rs 1,220) for loose — 10kg.

Malaysia's crude palm oil August contracts settled at MYR 3,110 (MYR 3,150), September at MYR 3,130 (MRY 3,164) and October at MYR 3,133 (MYR 3,166) a tonne. On National Board of Trade — Indore, soya refined oil July-12 futures closed lower at Rs 764.80 (Rs 765.50) and August at Rs 779.60 (Rs 782.90).

The Bombay Commodity Exchange spot rates were (Rs/10 kg): Groundnut oil 1,190 (1,190), soya refined oil 740 (732), sunflower export refined 675 (675), sunflower refined 750 (745), rapeseed refined 860 (833), rapeseed expeller refined 830 (803) cotton refined 710 (705) and palmolein 618 (612).

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