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The prevailing dry weather in main oilseed growing states such as Madhya Pradesh, Gujarat and Maharashtra boosted edible oil prices on Monday.
Rainfall has been 24 per cent below average so far this season. Edible oil prices in the spot market were also up following a firm trend in global markets.
Dry weather in the US also pushed up prices at the Chicago and Malaysian futures markets.
Malaysian BMD CPO (crude palm oil) futures closed higher, tracking gains for Chicago soya oil and could rise further as the premium of soya oil over palm oil has gone up to $180 a tonne.
The price difference may drive cost-conscious buyers to shift demand to cheaper palm oil.
The Indian rupee fell to near a record low. A weak rupee makes edible oil imports expensive forcing domestic refiners to raise the rate.
Rising demand for palm oil ahead of the fasting month Ramadan in July-end also added to the bullish mood in the market. Demand may stay healthy because of forthcoming festivals.
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