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Groundnut oil extended gains along with soya oil and rapeseed oil on firm reports from producing centres on Wednesday. Palmolein and cotton oils declined by Re 1 each tracking a weak Malaysian market that extended losses. Crude palm oil (CPO) futures on Bursa Malaysia Derivatives (BMD) dropped to a three-week low as investors adjusted their positions on weak technicals and expectations of high stocks. In Mumbai, groundnut oil shot up by Rs 10. Soya refined oil was up by Re 1 and rapeseed oil increased by Rs 6 for 10 kg. Higher demand for groundnut seed by exports and farmers for sowing in Gujarat extended gains in groundnut oil and it breached the Rs 900-mark for 10 kg on Wednesday. Lower arrivals of rapeseeds and soyabean pushed up their prices. Local refineries have reduced rates but response was poor.
Oil millers said demand for HPS groundnuts for exports, sowing and consumption in Saurashtra has increased the price gap sharply. Crushing mills are facing parity problems, which has hurt production. Supplies of groundnut oil are going to be tight in the coming days. More than 450-500 tonnes of HPS groundnuts are being traded daily Saurashtra. In Rajkot, groundnut oil telia tin shot by Rs 30 to Rs 1,895 and loose (10 kg) by Rs 20 to Rs 895.
Market sources said early monsoon in main producing centres have raised hopes of good harvest for oilseeds. Resellers sold 180-200 tonnes of palmolein at Rs 571-573 on slightly improved retail demand. Liberty was quoting palmolein at Rs 577-580. Ruchi's rates were: for palmolein Rs 574, for soya refined oil Rs 635 and for sunflower oil Rs 692. Allana's palmolein was at Rs 580.
Malaysia's BMD CPO July contract was at MYR3,340 (MYR3,371), August at MYR3,316 (MYR3,354) and September at MYR3,313 (MYR3,352) a tonne. Indore NBOT soya oil June contract closed at Rs 649.50 (Rs 650) and July at Rs 654 (Rs 653.40).
Mumbai commodity exchange spot rate (Rs/10 kg): Groundnut oil 890 (880), soya refined oil 636 (635), sunflower exp. ref. 650 (650), sunflower ref. 700 (700), rapeseed ref. oil 670 (664), rapeseed expeller ref. 640 (634), cotton ref. oil 634 (635) and palmolein 575 (576).
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