Edible oils rally on futures

Our Correspondent Mumbai | Updated on December 23, 2011 Published on December 23, 2011

Edible oils remained bullish in the local physical markets on Friday on firm palm and soya oil in global and local futures markets. Demand, though, was need-based.

Palmolein rose by Rs 3, soya refined oil by Rs 5, cotton refined oil by Rs 4 and groundnut oil by Rs 5 for 10 kg. A bullish Saurashtra market has pushed up groundnut oil by Rs 75 for 10 kg in the last one week and by Rs 135 for 10 kg this month. Sunflower oil was unchanged while rapeseed oil declined by Rs 10 in absence of demand.

Crude palm oil (CPO) futures rose to their highest level in a month on the Bursa Malaysia Derivatives (BMD) Exchange as traders rushed to cover shorts ahead of the Christmas weekend amid worries about bad weather in South America and South-East Asia. About 700-800 tonnes of palmolein was traded at Rs 582-590 in the resale market. Local refiners increased prices of palmolein and soya oil by Rs 8-10 as foreign markets gained.

Resellers offered palmolein at Rs 590-591. Liberty quoted palmolein at Rs 592-594 and super palmolein at Rs 610. Ruchi quoted palmolein at Rs 591, soya refined oil at Rs 670 and sunflower refined oil at Rs 710. Allana offered palmolein at Rs 585. In Saurashtra and Rajkot, cotton oil extended gains by Rs 5 at Rs 619-620 (Rs 614-615) And groundnut oil was up Rs 50 at Rs 1,550 for a telia tin and by Rs 35 at Rs 1,010 for loose (10 kg).

Malaysia's BMD CPO's January contracts settled higher at MYR3,170 (MYR3,095) and February MYR3,175 (MYR3,100) a tonne. Soya oil for January delivery was up at Rs 692.60 (Rs 678.30) and for February closed at Rs 689.30 (Rs 683.30) on the National Board of Trade in Indore.

Bombay Commodity Exchange spot rates (Rs/10 kg): groundnut oil — 985 (980), soya refined oil — 665 (660), sunflower exp. ref. — 650 (650), sunflower ref. — 715 (710), rapeseed ref. oil — 760 (770), rapeseed expeller ref. — 730 (740), cotton ref. oil — 632 (628) and palmolein — 584 (581).

Published on December 23, 2011
This article is closed for comments.
Please Email the Editor