Groundnut oil shot up to a record high of Rs1,005 per 10 kg in the Mumbai edible oil market on Tuesday on tight supply situation at producing centres.  Palmolein and soya oil rose by Rs 4 – Rs 7 respectively in line with increase in sell rates by local refineries, tracking firm foreign markets. Sunflower refined oil was up by Rs 10 and cotton oil prices increased by Rs 4. Rapeseed oil declined by Rs 3 on lack of demand and weak reports from producing centres. Sentiment was firm even as demand was weak despite the ongoing festival season. 

Malaysian palm oil market was shut for holidays. On Monday, Malaysia's BMD CPO futures ruled higher, tracking the rally in US grain and soybean futures. Corn and soybean prices climbed to fresh highs on declining crop outlook. The domestic futures market witnessed a firm trend to begin with, but ended lower on profit booking. Tracking the firm foreign market, local refineries increased their rates for Palmolein, Soya oil and Sunflower in the range of Rs 4/Rs 5 per 10 kg.

After lacklustre trade during the last two–three days due to heavy rain, the market witnessed yet another weak trading day on Monday, sources said. The sudden rate increase (in palmolein, soya and sunflower oil) by domestic refineries kept local buying sentiment at bay. Retail demand was also very weak. Around 80–100 tonnes of Palmolein for resale traded in the range of Rs 555/Rs 558. There was no demand for indigenous oils. There is sufficient stock of imported oils (at various ports) and steamers carrying edible oil continue to come in . This means, there will be plenty of supply during the festival season. Most stockists have preferred to take deliveries of old contracts. 

Towards the day's close, resellers were quoting palmolein at Rs 556 – Rs 558. Liberty's rates for Palmolein were Rs 563, Soya oil Rs 645, sunflower oil Rs 705. Ruchi was quoting Palmolein was Rs 561, Soya refined oil Rs 645 and Sunflower oil Rs 705. Allana's Palmolein was Rs 563 for 10-20 and 20-30 September. Palmolein for October delivery was quoted Rs 559 – Rs 560. In Rajkot – Saurashtra, groundnut oil was steady at Rs 1,590 (Rs 1,590) for Telia tin and loose - 10kg at Rs 1,040 (Rs 1,040).

Last traded Malaysian BMD CPO futures for September-11 closed at 3,120; October-11, 3,047 and November-11, at 3,020 Malaysian ringgits (MYR) a tonne.  US soybean futures climbed Monday as it appeared that the crop could miss out on badly needed rains.

NBOT futures : Indore, NBOT soya oil September-11, futures was Rs 662 (Rs 663.60) and October-11, at Rs 653.00 (Rs 653.10).   

Bombay Commodity Exchange spot rate (Rs/10kg) :  Groundnut oil 1005 (990), Soya refined oil 645 (638), Sunflower exp. ref. 655 (655), Sunflower ref. 710 (700), Rapeseed ref. oil 692 (695), Rapeseed expeller ref. 662 (665), Cotton ref. oil 659 (655) and Palmolein was 559 (555). 

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