The edible oils market witnessed a firm trend on Tuesday on expectation of higher demand ahead of Diwali. The volume was lower as stockists have covered sufficient quantity previous day.
Imported palmolein and soyabean refined oil rose by Rs 6 and Rs 5 for 10 kg each, tracking higher selling rates offered by local refineries.
Sunflower oil was up by Rs 5-10 and cotton refined oil gained Rs 5. Groundnut oil lost Rs 10 despite firm reports from Saurashtra – Rajkot. Rapeseed/mustard oil ruled unchanged. Sentiment was steady, said sources.
A wholesaler said: “Stockists keep away from fresh bulk buying as they have covered sufficient quantity of palmolein and other edible oils previous day.
Weakness in Malaysian palm oil futures weigh on spot market sentiment and traders see more downside correction in the coming days. Local level pipeline is empty and any improvement in demand will lend support to the price. Refineries are quoting imported edible oils for forward delivery so supply is tight in ready delivery. Expectation of higher physical demand for Diwali festival will boost the sentiment.”
As traders have covered more than 2,300-2,400 tonnes of palmolein, soyabean refined oil and sunflower oil directly from the refineries, volumes remained subdued . During the day, about 150-200 tonnes of palmolein were resale traded in the range of Rs 518-520. For indigenous edible oils selling pressure increased from producing centres.
Dhulia - Maharashtra millers have quoted cotton refined oil at Rs 690. Arrivals of new cropwill pick up after Dasara in producing centres, said sources.
In Saurashtra – Rajkot, groundnut oil Telia tin improved by Rs 15 to Rs 1,740 and loose 10 kg increased by Rs 5 to Rs 1,130.
Towards the day’s close, Liberty was quoting palmolein at Rs 522-525 and super palmolein Rs 585 for Oct-Nov, soya refined oil Rs 680 up to Nov 10. Ruchi quoted palmolein at Rs 513 JNPT for Nov 15-30 and Rs 521 for Nov 1-Dec 15, super Palmolein Rs 582 for Nov 1-Dec 15, soya refined oil Rs 678 and sunflower refined oil Rs 723. Allana’s rate for super palmolein was Rs 580.
On the National Commodities and Derivatives Exchange, soyabean refined oil November futures declined by Rs 7.25 to Rs 683.05, December by Rs 11.80 to Rs 680.10 and January by Rs 12 to Rs 685.50
Malaysia's crude palm oil November futures settled lower at MYR 2,437 (2,469), December at MYR 2,496 (2,528) and January at MYR 2,540 (2,577) a tonne.
The Bombay Commodity Exchange spot rates were (Rs/10 kg): groundnut oil 1,130 (1,140), soya refined oil 675 (670), sunflower exp. ref. 675 (670), sunflower ref. 725 (715), rapeseed ref. oil 840 (840), rapeseed expeller ref. 810 (810) cotton ref. oil 680 (675) and palmolein 524 (518).