Edible oils extended gains on tight supply on Thursday. Improved local demand ahead of Dussehra pushed up groundnut, sunflower and rapeseed oils by Rs 5 for 10 kg each. Cottonseed refined oil increased by Rs 2 for 10 kg, while imported soyabean oil and palmolein edged up by Rs 5 and Rs 2 each tracking firm futures. Stockists bought palmolein for forward delivery, while volume in the ready market remained subdued. Higher closing of Malaysian palm oil futures pushed up the sentiment in the physical market, said market sources.

Malaysian palm oil futures climbed on Thursday on emerging concerns of floods in key growing regions curbing output and a slew of economic data from the US and China that showed global growth trends were intact. Palm oil futures, which have lost 21 per cent so far this year, also gained support from short covering ahead of an Islamic holiday next week.

Sources said firm reports from Malaysia encouraged local bulk inventory buying for Dussehra and Diwali festivals. Traders expect higher demand for cheaper edible oils such as cotton, soya and palmolein. Arrivals of cotton, groundnut and soyabean in producing States are expected to rise sharply after Dussehra.

Liberty sold 350-400 tonnes of palmolein at Rs 515-517 for delivery between October 20 and November 20. Ruchi sold 40-50 tonnes at Rs 515 for November and Allana sold 60-70 tonnes at Rs 518. Another 80-100 tonnes of palmolein were traded in the resale market at Rs 517-518 for ready delivery. In Saurashtra and Rajkot, groundnut oil was at Rs 1,725 (Rs 1,720) for a telia tin and at Rs 1,125 (Rs 1,120) for loose (10 kg).

At the end of the day, Liberty quoted palmolein at Rs 517-520 and super palmolein at Rs 578 for delivery between October 20 and November 20, and soya refined oil at Rs 665 for November 20. Ruchi quoted palmolein at Rs 515 for November, super palmolein at Rs 576 for November, soya refined oil at Rs 665 for October-November and sunflower refined oil at Rs 710 for October-November. Allana palmolein at Rs 520 and super palmolein at Rs 575.

On the National Commodities and Derivatives Exchange, soyabean refined oil’s November contracts jumped by Rs 16.35 to Rs 668.70 and December by Rs 16.55 to Rs 668.

Malaysia’s crude palm oil’s November contracts settled at MYR2,396 (MYR2,393) and December at MYR2,456 (MYR2,440) a tonne.

The Bombay Commodity Exchange spot rates (Rs/10 kg): groundnut oil 1,130 (1,125), soya refined oil 665 (660), sunflower exp. ref. 650 (645), sunflower ref. 710 (705), rapeseed ref. oil 835 (830), rapeseed expeller ref. 805 (800) cotton ref. oil 662 (660) and palmolein 518 (516).

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