Imported edible oil prices rallied on Wednesday despite a sharp decline in the Malaysian markets. In the spot market, palmolein rose by Rs 4 and soyabean refined oil by Rs 5 for 10 kg. A firm sentiment in the futures market on lower arrival of mustard-rapeseeds in producing areas pushed up rapeseed oil prices by Rs 20 in the physical market.

Sunflower oil was up by Rs 5. Groundnut oil and cotton refined oil ruled unchanged, tracking weak trend in producing centres on higher arrivals of raw materials. The sentiment was cautious with thin volume, said sources.

Mr Shailesh Kataria of Riddhi Broker told Business Line : “Edible oil prices will gain in the coming days on fresh buying and short covering with the start of the new month. As monsoon approaches, the farming community will get engaged in sowing work as arrivals of indigenous seeds in producing areas are expected to decline from next month. Demand for edible oils from West Asia, India, Pakistan, Bangladesh and China is expected to rise as festival season will start with Ramadan in July. Possible inventory building demands will lead to improvement in prices”.

Mr Kataria said that currency factor is currently dominating the sentiment and week cues from the Euro Zone could push up the dollar.

Market sources said that a rebound in the dollar, making imports costlier and fear of increase in tariff value of refined oils at the domestic level, will lead to refiners raising the price by Rs 2-5 for edible oils.

About 80–100 tonnes of palmolein were traded in resale at Rs 635.

Liberty quoted palmolein at Rs 642 for June, soya oil at Rs 712 and sunflower refined oil at Rs 740. Ruchi quoted palmolein at Rs 638 for 10-30 June, soya refined oil at Rs 710 and sunflower refined oil at Rs 735. Allana's rate for palmolein was Rs 644 for 15- 30 June. Re-sellers were quoting palmolein at Rs 636-637. In Rajkot-Saurashtra groundnut oil was Rs 1,810 (Rs 1,800) for Telia tin and Rs 1,180 (Rs 1175) for loose- 10 kg.

Malaysia's crude palm oil July contracts closed lower at MYR 3,109 (MYR 3,170), August at MYR 3,111 (MYR 3,178) and September at MYR 3,108 (MYR 3,172) a tonne. The Bombay Commodity Exchange spot rates were (Rs/10 kg) : groundnut oil 1,175 (1,175), soya refined oil 705 (700), sunflower exp. ref. 665 (665), sunflower ref. 725 (720), rapeseed ref. oil 815 (795), rapeseed expeller ref. 785 (765) cotton ref. oil 665 (665) and palmolein 636 (632).

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