31/01/2013 (Hindu Business Line) - Sentiment in edible oils market turned better on Wednesday tacking extended gain in Malaysian and domestic futures markets. Despite that spot prices for most of oils remains unchanged. Palmolein, Soyabean, Cotton and Sunflower oils rule steady while Groundnut and rapeseed oil drop by Rs5 and Rs3 each. Late evening there was talk of government may further increase the import duty of edible oils to protect the local industry said sources.

Malaysian palm oil futures rose to their highest level in nearly 4 weeks on Wednesday on expectations that dry weather could hurt crops in top soy producer Argentina and shift demand to the cheaper edible oil. April futures closed above 2500 ringgits a tone.

Analyst said dryness in parts of Argentina has raised supply concerns for soyabean and pushed up prices, potentially turning buyers to palm oil which is currently trading at a discount of more than $300 a ton. The discount between palm and soya oil is quite big, and this will stir demand for palm oil from importing nations".

Domestic soya oil futures rose by more than Rs8 tracking higher closing Malaysian palm oil futures. In spot market Stockiest covered about 800 – 900 tons of palm oil during the day. Liberty sold about 400-450 tons of Palmolein at Rs.513-Rs515 and about 200-250 ton of Super Palmolein at Rs560 for delivery up to February. Resellers offloaded about 200 – 250 tons of Palmolein at Rs.504 - 505 ex JNPT and Rs507 -508 ex Patalganga sources said.

Towards the end of the day Liberty was quoting palmolein at Rs515 for February.  Super palmolein Rs 563, Soya refined oil Rs730 and Sunflower refined oil Rs800for Feb. Ruchi quoted palmolein at Rs518 ex Patalganga, Soyabean refined oil at Rs72 and Sunflower refined oil Rs800 for February. Allana’s rate for Palmolein was Rs515 and Super palmolein Rs560. In Saurashtra – Rajkot groundnut oil was up by Rs10 to Rs1960 (Rs 1950) for telia tin and by Rs5 Rs1275 (Rs 1270) for loose (10 kg).

On the National Commodities and Derivatives Exchange, soyabean refined oil’s February futures shot up to Rs734.10 (Rs725.50), March was Rs708.70 (Rs702.55) and April was Rs695.05 (Rs690.70). Malaysia’s crude palm oil’s February contracts settled higher at MYR 2,445 (MYR 2,402), March at MYR2,480 (MYR2,443) and April at MYR2,510 (MYR 2,475) a tone.

The Bombay Commodity Exchange spot rates (Rs/10 kg): groundnut oil 1,275 (1,280), soya refined oil 718(718), sunflower exp. ref. 725 (725), sunflower ref. 800 (800), rapeseed ref. oil 807 (810), rapeseed expeller ref. 777(780) cottonseed ref. oil 620 (620) and palmolein 507 (507).