Edible oils spiked as the rupee fell below Rs 50 against the dollar after two and a half years and foreign markets firmed on Friday.

Local refiners increase prices of palmolein by Rs 8-10 for 10 kg and of soya oil by Rs 5 for 10 kg.

Soya oil rose by Rs 6 in Mumbai despite lack of demand, palmolein by Rs 7 and rapeseed oil by Rs 13. Cotton refined oil was up by Rs 3. Volumes were thin as Diwali buying is over. Groundnut oil and sunflower oil remained unchanged at producing centres where selling pressure increased, said a wholesaler.

Crude palm oil (CPO) futures rose on Bursa Malaysia Derivatives (BMD) as investors covered shorts in the hope that a European summit this Sunday may resolve the Eurozone debt crisis. Resellers sold palmolein at Rs 535-537 to needy buyers. Liberty offered palmolein at Rs 538 for October delivery, soya oil at Rs 635 and super palmolein at Rs 570. Ruchi quoted palmolein at Rs 533 for delivery between October 25 and November 25, and soya refined oil at Rs 630 for October delivery. Allana offered palmolein at Rs 535 for delivery between November 1 and 10. In Saurashtra, 90,000 bags of groundnuts arrived, and 4.6 lakh bags of soyabean arrived in Madhya Pradesh. In Rajkot, groundnut oil remained unchanged at Rs 1,280 for a telia tin and at Rs 825 for loose (10 kg). Cotton (wash) sold at Rs 613-615.

Malaysia's BMD CPO's November contracts settled higher at MYR2,881 (MYR2,860), December at MYR2,886 (MYR2,866) and January at MYR2,883 (MYR2,866) a tonne. Soya oil for November delivery closed higher at s 614.90 (Rs 609) and at Rs 616.80 (Rs 611) for December delivery on National Board of Trade in Indore.

Bombay Commodity Exchange spot rates (Rs/10 kg): groundnut oil 840 (840), soya refined oil 631 (625), sunflower exp. ref. 655 (655), sunflower ref. 725 (725), rapeseed ref. oil 698 (685), rapeseed expeller ref. 668 (655), cotton ref. oil 651 (648) and palmolein 535 (528).

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