28/12/2007 (The Economic Times), Mumbai - Edible oil prices have gone up in the domestic market following a firm international soya complex and palm oil prices. Prices have gone up by Rs 1-Rs 1.5 per kg for all edible oils since the past 15 days despite good supplies.

In Mumbai local market, the palm oil prices are ruling at Rs 525 per 10 kg, soya oil prices are at Rs 560 per 10 kg while cotton seed oil prices are at Rs 540 per 10 kg levels. All prices are inclusive of taxes. A prominent Mumbai-based edible oil trader said that prices have moved up tracking firm international market.

“There is no supply crunch in the domestic market,” he said. He added that trade in soya oil is currently low as traders prefer to buy cotton oil which is cheap with 90,000-100,000 tonnes of it arriving in the market.

Locally, the prices are also being supported by demand from the solvent extraction plants and also demand of meal from China.

On NCDEX, the last traded price of soya oil was up by 1% at Rs 551.6 per 10 kg against the previous close, soyabean was up by 2% at Rs 2,034 per quintal while rape mustard seed was also up at Rs 466.65 per 20 kg.
Amol Tilak from Kotak Commodities is bullish and feels that February contract on NCDEX may touch 2,100 per quintal level while soya oil near month can touch Rs 565 per 10 kg.

According to Angel Commodities analyst Badruddin correction is expected in the short term.
Globally, the edible oil complex is up with concerns that there may not be enough vegetable oil inventories to meet the demand, mainly from China and India.

China, the biggest buyer of vegetable oils, imported 29% more in the first 11 months of this year compared with a year earlier. In India, the import of vegetable oils during November 2007 is up by 41% at 427,912 tonnes compared to 302,034 tonnes in November 2006.

Soya oil surged to its highest in 33 years in CBOT. Soya oil for delivery in March rose to 49.97 cents a pound in after-hours electronic trading.