Higher demand for festivals starting next week and strong foreign markets lifted prices of most edible oils on Wednesday.

Groundnut and sunflower oils rose by Rs 5 each, palmolein improved by Rs 3, soya oil was up Re 1 and cotton refined oil gained Rs 2 for 10 kg. However, bearish reports from producing centres pulled down rapeseed oil by Rs 4 for 10 kg.

Local demand remains need-based even as the domestic futures market has improved, traders said.

Mood in the spot market was cautious retail demand was less than expected. Most players are confident, however, that demand will rise as festivals begin the second half of August. Resellers traded 150-200 tonnes of palmolein at Rs 556-558. There was talk of an importer buying 700-800 tonnes of palmolein at Rs 557-558. Indigenous oils remained bullish on a firm trend at producing centres.

Liberty quoted palmolein at Rs 562, soya oil at Rs 645 and sunflower oil Rs 700. Ruchi offered palmolein at Rs 560, soya refined oil at Rs 641 and sunflower oil at Rs 698. Allana quoted palmolein at Rs 562 for delivery during the next fortnight. While a telia tin of groundnut oil increased by Rs 15 to Rs 1,500 in Rajkot and Saurashtra, loose (10 kg) gained Rs 10 at Rs 975.

September contract of crude palm oil on Bursa Malaysia Derivatives closed at MYR3,147 (MYR3,121), October MYR3,136 (MYR3,113) and November at MYR3,131 (MYR3,109) a tonne. August contract of soya oil on National Board of Trade futures closed higher at Rs 668 (Rs 663.80) and September rose to Rs 664 (Rs 661).

Mumbai Commodity Exchange spot prices (Rs/10 kg): Groundnut oil 970 (965), soya refined oil 644 (643), sunflower exp. ref. 660 (655), sunflower ref. 710 (710), rapeseed ref. oil 696 (700), rapeseed expeller ref. 666 (670), cotton ref. oil 671 (669) and palmolein 559 (556).

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