Eyeing demand, stockists build edible oil inventories

Most edible oils prices ruled steady in physical market except palmolein which declined by Rs 2 for 10 kg. Fresh physical buying pushed up volumes higher as demand for Dasara – Diwali emerged.

The sentiment improved late evening as local refineries increased their rates for palmolein, soyabean and sunflower oils in the range of Rs 5-9.

In Mumbai market groundnut, cotton, soyabean, rapeseed/mustard and sunflower oil ruled unchanged. Palmolein prices initially lost Rs 2 but later improved by more than Rs 5 on higher demand.

Shailesh Kataria of Riddhi Brokers told

Business Line : “Higher physical demand from retail and bulk consumers for Dasara and Diwali boosted by extended gain in futures market pushed up overall sentiment and led to higher volumes.

As pipeline is empty, stockists came forward with fresh orders and covered more than 1,800-2,000 tonnes of palmolein, 200-300 tonnes of soyabean refined oil and 80-100 tonnes of sunflower oil directly from the refineries for ready and forward delivery.

They continued building inventories on expectation of higher demand coming days.

According to him, on the back of fresh demand, Liberty sold about 700-800 tonnes palmolein and 100-150 tonnes of soyabean refined oil. Ruchi sold 900-1,000 tonnes of palmolein, 100-150 tonnes soyabean refined oil and 80-100 tonnes of sunflower oil.

Stockists kept away from fresh buying in indigenous oils as arrivals of new crops are expected to rise from Dasara.

In Saurashtra – Rajkot, groundnut oil Telia tin declined by Rs 45 to Rs 1,725 and loose 10 kg by Rs 25 to Rs 1,125 .

Towards the day’s close, Liberty was quoting palmolein at Rs 522-525 and super palmolein Rs 585, soya refined oil Rs 680.

Ruchi quoted palmolein at Rs 512-521, super palmolein Rs 582, soya refined oil Rs 676 and sunflower refined oil Rs 720. Allana’s rate for super palmolein was Rs 575-580.

Malaysia's crude palm oil November futures settled higher at MYR 2,469 (2,404), December at MYR 2,528 (2,475) and January at MYR 2,577 (2,501) a tonne.

The Bombay Commodity Exchange spot rates were (Rs/10 kg): groundnut oil 1,140 (1,140), soya refined oil 670 (670), sunflower exp. ref. 670 (665), sunflower ref. 715 (715), rapeseed ref. oil 840 (840), rapeseed expeller ref. 810 (810) cotton ref. oil 675 (675) and palmolein 518 (520).