28/08/2012 (Hindu Business Line) - Edible oils prices witnessed steady rise tracking extended gain in Malaysian palm oil futures on Monday but improve resale selling pressure in domestic market on lack of demand kept moral weak at end the end of the day. There were no buyers even resellers were offering Rs.10 lower for Palmolein. Volume remains subdued and isolated. Monsoon rain progress in main producing states weighed on indigenous edible oils. Futures markets cooled down after initial gain.

In Mumbai market imported palmolein and soyabean refined oil rose by Rs 4 and Rs 7 each in line with price raised by local refineries. Indigenous edible oils Groundnut oil and Rapeseed oil rule steady. Sunflower oil rose by Rs5- Rs 10 and cotton refined oil was up by Rs 3 for 10 kgs. Malaysian crude palm oil futures extended last week gain on Monday by 2, 17 and 22 ringgits a tone to a 6-week high, as traders continued to bet on tight global edible oil supplies with no sign of the drought easing in the soy-producing US Midwest.

A Mumbai based trader said good progress of monsoon rain in Maharashtra, Gujarat, Madhya Pradesh, Rajasthan and other area has improved the prospects for the standing crops and other side local demand was need based in month end. Most traders have covered their requirements at lower price in well advance now stay away from new buying at higher price. Malaysian market extended steady gain on fresh Chinese demand. US new-crop soybeans hit a contract high on Monday after farm newsletter Pro Farmer estimated US soyabean production would be worse than forecasts by the US Department of Agriculture.

In physical market resellers were offering palmolein Rs 10 lower but there was no response from buyers. Palmolein was resold at Rs.620 on isolated trade. There were no activities in indigenous oils. Traders were watching for further indications on export trends as cargo surveyor, Societe Generale de Surveillance, releases its Aug 1-20 data together with Aug 1-25 data later in the day he said.

At the close of the day Liberty was quoting Palmolein at Rs.633-Rs.634 for September and Rs 636- Rs 637 for October, Super palmolein Rs.675, Soya oil Rs.782 and Sunflower refined oil Rs.790. Ruchi quoted palmolein Rs.631 for 20 September and Rs 635 for 20 Sept - 10 Oct, Soya refined oil Rs.781 – Rs 785 and Sunflower refined oil Rs 785 – Rs 790. Allana’s rate for Palmolein was Rs.630 for 1-15 October. Vaibhavi’s rate for Palmolein was Rs 732 for 1-15 October. Reseller’s were quoting Palmolein at Rs 619 – Rs 620. In Saurashtra – Rajkot, Groundnut oil decline by Rs 20 to Rs 1960 (Rs 1980) for Telia tin and lower by Rs 10 to Rs 1280 (Rs 1290) for loose 10 kgs.

On National Board of Trade – Indore, Soya refined oil September -12 futures was Rs 797.50 (Rs.803.00) and October-12 was Rs 806.50 (Rs 812.00). Malaysia's crude palm oil September -12 contracts settled at MYR 3,032 (MYR 3,030), October -12 closed at MYR 3,068 (MYR 3,051) and November -12 at MYR 3,091 (MYR 3,069) a tone.

The Bombay Commodity Exchange spot rates were (Rs/10 kg): groundnut oil 1,260 (1,260), soya refined oil 778 (771), sunflower exp. ref. 725 (720), sunflower ref. 785 (775), rapeseed ref.oil 900 (900), rapeseed expeller ref. 870 (870) cotton ref. oil 778 (775) and palmolein 625 (621).