26/10/2011 (Hindu Business Line) - Edible oils firmed up on Tuesday as crude palm oil (CPO) futures on Bursa Malaysia Derivatives (BMD) Exchange rose to near one-month high.

Palmolein extended gains by Rs 3 for 10 kg. New demand from brand-makers pushed up mustard and rapeseed oils by Rs 5 for 10 kg. Soya refined oil, sunflower oil and cotton oil remained unchanged.

According to the Bombay Commodity Exchange, edible oil markets here will hold muhurat trading for the Hindu new year on Wednesday evening from 5 p.m.. The market will remain closed on Thursday and Friday. Routine trading will resume on Saturday. Local refiners increased palmolein and soya oil prices tracking a strong Malaysian market. New arrivals at the producing centres will increase after Labh Panchami and new demand is expected at the beginning of the next month. Traders avoided new bets as supplies remained tight and the Malaysian market saw a sudden spurt. Volumes were negligible in the spot market because of lack of demand. Resellers offered palmolein at Rs 537-538. Liberty offered palmolein at Rs 540-541 for October delivery; soya refined oil at Rs 636 and super palmolein at Rs 573. Ruchi quoted palmolein for November delivery at Rs 535-537 and soya refined oil at Rs 630 for October delivery. Allana offered palmolein at Rs 535 for delivery between November 10 and 20.

Reuters reports: Malaysian palm oil futures rose to a near one-month high on Tuesday, buoyed by export data and expectations of lower output, with additional support from optimism over a possible solution to the Eurozone's debt problems. Benchmark January palm oil futures on the BMD ended 2.1 per cent higher at 2,951 Malaysian ringgits ($941) a tonne, their highest since September 26. Traded volumes for the January palm contract stood at 14,264 lots of 25 tonnes each, compared with 12,213 lots on Monday.

Malaysia's BMD CPO's November contracts settled at MYR2,950 (MYR2,890) and December at MYR2,955 (MYR2,891) a tonne. Soya oil for November delivery touched high of Rs 628 before settling at Rs 626.50 (Rs 614.20) on the National Board of Trade in Indore.

Bombay Commodity Exchange spot rates (Rs/10 kg): soya refined oil — 631 (631); sunflower exp. ref. — 655 (655); sunflower ref. — 725 (725); rapeseed ref. oil — 705 (700); rapeseed expeller ref. — 675 (670); cotton ref. oil — 650 (650); palmolein — 538 (535).