1/12/2011 (Hindu Business Line) - Palmolein rose by Rs 2 for 10 kg as the gap between prices quoted by refiners and resellers narrowed on lower sales in the resale market. Firm reports from North India lifted rapeseed oil by Rs 4 for 10 kg. Demand for rapeseed and mustard oil is seen higher temperatures drop in the North.

Cotton oil declined by Rs 4 for 10 kg on higher arrivals. Groundnut oil, soya refined oil and sunflower oil were unchanged. Crude palm oil (CPO) futures on the Bursa Malaysia Derivatives Exchange fell sharply as soya oil futures weakened and on euro zone debt concerns.

Local dealers have refrained from placing new orders because of a lack of local demand, higher kharif arrivals in producing areas and bearish foreign markets, a wholesaler said.

In Gujarat, cotton oil remained weak despite stable demand at Rs 578-580 for 10 kg. While 40-45 tankers of 9.5-10 tonnes each of cotton oil were traded, 20-22 tankers of groundnut oil, whose arrivals have dipped because of the marriage season, were traded. In Saurashtra, about 70,000 bags arrived while 1.5 lakh bags arrived in Rajasthan. In Saurashtra and Rajkot, groundnut oil was unchanged at Rs 1,305 for telia tin and at Rs 845 for loose (10 kg).

In the physical market here, resellers traded 80-100 tonnes of palmolein at Rs 567-570. Liberty offered palmolein at Rs 580-582, super palmolein at Rs 595 and soya refined oil at Rs 624. Ruchi quoted palmolein at Rs 577, soya refined oil at Rs 621 and sunflower refined oil at Rs 688. Allana offered palmolein at Rs 575 delivery between December 1 and 10. Malaysia's BMD CPO's December contracts settled at MYR3,000 (MYR3,058) and January at MYR3,012 (MYR3,064) a tonne. Soya oil for December delivery closed at Rs 633 (Rs 638.40) while for January closed at Rs 645 (Rs 647.20) on the National Board of Trade in Indore.

Bombay Commodity Exchange spot rates (Rs/10 kg): groundnut oil - 850 (850), soya refined oil - 620 (620), sunflower exp. ref. - 630 (630), sunflower ref. - 700 (695), rapeseed ref. oil - 724 (720), rapeseed expeller ref. - 694 (690), cotton ref. oil - 598 (602) and palmolein - 572 (570).