Indigenous edible oil extended gain on Friday in line with firm trend producing level due to tight supply and higher demand.
Groundnut oil rose by Rs10, Rapeseed oil up by Rs 4 and Cotton refined oil edge up by Rs 6 for 10 kgs. Sunflower oil and Palmolein rule steady. Soya oil drop by Rs 4 as leading refinery reduce rates by same margin. Foreign markets showed firm trend.
Volume witnessed mainly with Gujarat while local business was need based due to ease demand middle month. Malaysian crude palm oil futures closed higher by 49, 48, 41ringgits a tone on Thursday to their highest in more than two weeks on Friday as investor optimism returned on recovering exports and a brightening outlook for the euro zone debt crisis.
Analyst said higher palm oil exports are definitely positive for investor sentiment. But production is also growing and there's the risk that it can be higher than export growth. CPO futures also on course for the first weekly gain since July, snapping five straight weeks of losses, after data showed an unexpected increase in exports for the first half of the month. Traders avoided taking risky positions ahead of a long weekend as Malaysian markets will be closed on Monday and Tuesday Muslim festival of Eid ul-Fitri.
Sources said shortage of ready stocks and higher price in Gujarat has increased their buying of palmolein in Mumbai this week.
As per market talk Gujarat based traders have covered about 300- 400 tonnes palmolein at Rs 615 from Liberty. Ruchi sold about 300 tonnes Soyabean refined oil at Rs 741 and Allana sold 150 – 200 tonnes of Palmolein at Rs 608. Stockiest are optimistic about higher consumer demand in coming days. Concern about the new crop and firm futures markets supporting sentiments.
According to the Solvent Extractors’ Association of India (SEAI) overall import of vegetable oils between November 2011 and July 2012 (oil year) was up by 20 per cent at 72.65 lakh tonnes (60.43 lakh tonnes). Import of refined oil (RBD palmolein) was up 80 per cent to 13.25 lakh tonnes against 7.37 lakh tonnes during the same period a last year.
At closing of the day Liberty was quoting Palmolein at Rs.612-Rs.613, Super palmolein Rs.652, Soya oil Rs.743 and Sunflower refined oil Rs.765. Ruchi quoted palmolein Rs.612 – Rs 614, Soya refined oil Rs.741 - Rs.743, Sunflower refined oil Rs 760.
Allana’s rate for Palmolein was Rs.608. Vaibhavi quoted palmolein Rs.610. In Saurashtra – Rajkot, Groundnut oil rule steady.
Price for Telia tin was Rs.1910 (Rs 1,915) and loose 10 kgs was Rs 1,260 (Rs 1,260).
On National Board of Trade – Indore, Soya refined oil September -12 futures closed lower at Rs 791.00 (Rs.795.00).
Malaysia's crude palm oil September -12 contracts closed at MYR 2,898 (MYR 2,860), October -12 higher at MYR 2,928 (MYR 2,910) and November -12 closed at MYR 2,962 (MYR 2,942) a tone.
The Bombay Commodity Exchange spot rates were (Rs/10 kg): groundnut oil 1,240 (1,230), soya refined oil 741 (745), sunflower exp. ref. 705 (705), sunflower ref. 765 (770), rapeseed ref. oil 888 (884), rapeseed expeller ref. 858 (854) cotton ref. oil 748 (742) and palmolein 608 (608).