11/12/2010 (Business Standard) - Edible oils maintained their upward march for the third week in a row on the back of increased buying by vanaspati millers and retailers, driven by the ongoing marriage season demand amid restricted arrivals.

Firming trend in overseas markets, where palm oil prices rose to an almost 29-month high levels was another factor behind the uptrend in edible oil prices. A few oils in the non-edible section, also showed strength on fresh enquiries from consuming industries.

Sentiment in edible oils remained bullish following increased buying by vanaspati millers and retailers to meet marriage season demand, traders said.

They said a firming trend in Malaysia, the hub of global palm oil, also bolstered the uptrend. The palm oil advanced to a 29-month high as a drop in November output and stockpiles in Malaysia, the second-largest producer of the commodity.  

Meanwhile, palm oil futures for February-delivery gained 3.3 per cent to $1,159 a metric tonne, the highest closing since July 3, 2008.

In the national capital, groundnut mill delivery oil (Gujarat) remained in demand and added another Rs 50 to Rs 7,350 per quintal, while groundnut solvent refined oil traded higher by Rs 10 to Rs 1,425-1,435 per tin. 

Mustard expeller oil (Dadri) edged up by Rs 30 to Rs 5,650 per quintal, while mustard pakki and kachi ghani oils held steady at Rs 760-915 and Rs 915-1,015 per tin.

Sesame and cottonseed mill delivery (Haryana) oils were also in better shape and moved up by Rs 30 and Rs 200 to Rs 6,200 and Rs 5,400 per quintal. 

In line with a general firm trend, soyabean refined mill delivery (Indore) and soyabean degum (kandla) oils also shot up by Rs 200 and Rs 250 to Rs 6,000 and Rs 5,650 per quintal, respecively.

Crude palm oil (ex-kandla) and palmolein (RBD) oils moved up by Rs 100 and Rs 80 to Rs 5,250 and Rs 5,850 per quintal. 

Towards the non-edible section, linseed oil edged up by Rs 50 to Rs 4,450 per quintal on fresh enquiries from paint manufacturers and other consuming industries. Neem oil traded higher by Rs 50 to Rs 3,900-4,000 per quintal on increased offtake by soap manufacturers.