Oil millers face groundnut shortage on exporters buying

The bullish trend continued in groundnut oil and imported edible oils while rapeseed oil declined by Rs 8 on selling at producing centres on Thursday.

Groundnut oil gained Rs 25 for 10 kg in Mumbai, tracking movements in Saurashtra where it zoomed further by Rs 50 for 10 kg. Soyabean refined oil improved sharply by Rs 10 and palmolein increased by Re 1. Sunflower refined oil inch up by Rs 5.

Sources said that shortage of nuts in main producing areas of Saurashtra and demand from oil millers in the market pushed up groundnut oil tin near to Rs 2,000.

Fear of lower kharif arrivals and delay in rabi crops turn sentiment bullish in ingenuous edible oils.

Groundnut exporters are actively buying nuts resulting lower availability for crushing.

In Saurashtra groundnut, almost one and half months have passed but arrivals are yet to pick up as expected.

Currently, daily arrival is about 25,000-30,000 bags. Only in cotton, offloading are sufficient. Soyabean arrivals in Madhya Pradesh also stagnanted to 3-3.50 lakh bags. Globally, lower crop forecasts for soyabean in Argentina and Brazil and possible buying by China for reserve may lead to rally in soyabean in the coming days.

In Mumbai market, Ruchi sold 250-300 tonnes of palmolein at Rs 516 ex JNPT and then quoted Rs 2 higher.

In ready, 50-100 tonnes palmolein were traded in resale at Rs 513-514. Liberty sold 40-50 tonnes of soyabean refined oil at Rs 688.

Towards the end of the day, Liberty was quoting palmolein at Rs 518 and super palmolein Rs 572. Soya refined oil Rs 690 and sunflower refined oil Rs 775. Ruchi quoted palmolein at Rs 518; soyabean refined oil Rs 690 and sunflower refined oil Rs 768. Allana’s rates for palmolein was Rs 518 and super palmolein Rs 572.

In Saurashtra – Rajkot market, groundnut oil shot up by Rs 70 to Rs 1,950 (Rs 1,880) for a t elia tin and up by Rs 50 to Rs 1,270 (Rs 1,220) for loose 10 kg.

On the National Commodities and Derivatives Exchange , soyabean refined oil December shot up to Rs 710.10 (Rs 705.35), January Rs 705.80 (Rs 698.80) and February Rs 702.00 (Rs 694.95).

Malaysia’s crude palm oil December futures settled lower at MYR 2,300 (2,340), January MYR 2,373 (2,402) and February at MYR 2,411 (MYR 2,443) a tonne.

The Bombay Commodity Exchange spot rates were (Rs/10 kg): Groundnut oil 1,225 (1,200); soya refined oil 685 (675); sunflower exp. ref. 705 (705); sunflower ref. 770 (765); rapeseed ref. oil 848 (855); rapeseed expeller ref. 818 (825); cotton ref. oil 675 (675) and palmolein 516 (515).