22/12/2011 (Hindu Business Line) - Edible oils prices extended gain except Palmolein which lost Re 1 for 10 kg on Wednesday. Indigenous oils improved as peak arrival season for rapeseed, soyabean and groundnut has come to an end across the nation while demand from stockists is reported to be supporting across the major markets. Arrivals of Palmolein from Gujarat on stock transfer basis in Mumbai at lower rates keep its price under pressure and supply ample. Despite higher closing of Malaysian market palmolein was showing weakness in domestic market.

Groundnut oil extended gain by Rs 5 taking a total rise of Rs 120 this month tracking sharp rise in Saurashtra market and higher demand from brand makers. Similarly, Rapeseed refined oil improved sharply by Rs 17 with a total rise of Rs 55 this month. Soya refined oil increased by Rs 3, Sunflower expeller refined by Rs 5, cotton oil by Re 1. Source said weak demand during middle of the month and selling by Gujarat-based players on stock transfer basis with lower parity at Mumbai keeps palmolein under pressure of ample supply. Onset of winter across the country will lead decline in consumption of Palm oil as it has a freezing nature in cold weather. Hence traders are expecting lesser demand for Palm oil and more demand for indigenous oils coming days.

Re-salers were offering palmolein at Rs 580-582 while refineries kept rates unchanged. About 150-200 tonnes of Palmolein and other edible oils were traded. Liberty was quoting Palmolein at Rs 585-587 for December – January delivery and super palmolein at Rs 605. Ruchi was quoting Palmolein at Rs 581, Soya refined oil at Rs 665 and Sunflower refined oil at Rs 705 for January. Allana's Palmolein was at Rs 585 for December. Mewah was quoting Palmolein at Rs 585 for December and super Palmolein at Rs 605.

In Gujarat after continuous rise, groundnut and cotton oil ruled steady. Demand from exporters for nuts arrested price rise. In Rajkot, cotton oil was at Rs 610-612 (Rs 610-612). Groundnut oil was at Rs 1,500 (Rs 1,500) for Telia tin and Rs 980 (Rs 980) for loose-10kg.

Malaysia's BMD CPO's January contracts settled higher at MYR 3,074 (MYR 3,020), February MYR 3,075 (MYR 3,021), March MYR 3,072 (MYR 3,020) and April MYR 3,065 (MYR 3,011) a tonne. Soya oil for January futures closed lower at Rs 679 (Rs 680.20) on National Board of Trade in Indore.

Bombay Commodity Exchange spot rates (Rs/10 kg): groundnut oil 970 (965), soya refined oil 660 (657), sunflower exp. ref. 660 (655), sunflower ref. 710 (720), rapeseed ref. oil 775 (758), rapeseed expeller ref. 745 (728), cotton ref. oil 632 (631) and palmolein 583 (584).