RBD palmolein extended its gains further in the domestic market on Tuesday, marching towards Rs 500-level, tracking a sharp rebound in Malaysian markets. Mumbai edible oils market was officially closed for Christmas holiday but the private trade market witnessed a sharp jump in volume. Local refineries increased their rates for edible oils in line with bullish trends overseas.

In Mumbai, palmolein prices increased by Rs 5-8 for 10 kg and topped Rs 490. Soya, sunflower and rapeseed oil ruled unchanged. Groundnut and cotton oil quoted lower on lack of demand and on expectation of higher crushing coming days.

Mr Shailesh Kataria of Riddhi Brokers told Business Line that Malaysian palm oil futures have rebounded by 100 ringgits a tonne in the last three sessions on hopes of higher demand once Malaysia cuts its crude palm oil export tax to zero from January. Hopes are also high of a similar competitive reduction in export tax by Indonesia.

January onwards arrivals of kharif crops will start slowing down and this was reflected in the market sentiments.

More than 3,000 tonnes of palmolein were traded on Tuesday.

Liberty sold about 1,100-1,200 tonnes of palmolein at Rs 493-495; Ruchi sold about 500-600 tonnes at Rs 492-503 for Feb, Adani sold 900-1,000 tonnes at Rs 485 for Jan 1-20. Resellers offloaded about 350-400 tonnes in Rs 485-490 range. Demand for other indigenous oils was lacking.

At Saurashtra – Rajkot groundnut oil prices were Rs 2,020 (Rs 2,030) for telia tin and Rs 1,310 (Rs 1,325) for loose (10 kg).

In Mumbai, Liberty quoted palmolein at Rs 494-496 for January and Rs 503 for February; super palmolein at Rs 545 for Dec-January; soya refined oil at Rs 678 and sunflower refined oil at Rs 780 up to January.

Ruchi quoted palmolein at Rs 492 for January and Rs 503 for February; soyabean refined oil at Rs 674 up to January and sunflower refined oil Rs 775 up to January.

Allana’s rate for palmolein was Rs 490 and super palmolein Rs 554.

Malaysia’s crude palm oil’s January contracts settled higher at 2,299 (MYR 2,283), February at MYR 2,378 (MYR2,351) and March closed at MYR2,428 (MYR2,408) a tonne on Monday.

Mumbai nominal spot rates (Rs/10 kg) were: Groundnut oil 1,275 (1,280), soya refined oil 675 (675), sunflower exp. ref. 710 (710), sunflower ref. 780 (780), rapeseed ref. oil 820 (820), rapeseed expeller ref. 790 (790) cottonseed ref. oil 630 (631) and palmolein 490 (485).

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