Edible oils up on festive buying, firming global cues

Edible oils remained higher for the sixth straight week under review on sustained buying by stockists and vanaspati mills for the ongoing festival season amid reports of a firming trend in global markets.

A few non-edible oils also rose further on increased demand from the consuming industries against restricted arrivals from producing regions.

Trading sentiment bolstered on reports the palm oil rose for a fifth straight week in Malaysia, the best winning streak this year, on concern that heavy rainfall in Asia may hurt output and as gains in rival soyabean oil lifted demand for the most-consumed vegetable oil.

The report came in at a time when the domestic markets were passing through a bullish trend on buying by retail customers and vanaspati mills to meet the festive demand for ongoing Teej and the incoming Rakshabandhan festival. 

The paucity of stocks factor was supported on reports of the government importing edible oils.

The state-run trading firm PEC has floated a global tender to import 12,000 tonnes of edible oil and MMTC invited bids for importing 18,500 tonne refined, beached and deodorized (RBD) palmolein oil to meet the domestic demand. 

In Delhi, groundnut oil (Gujarat) remained in demand and added another Rs 100 to Rs 8,600 per quintal, while groundnut solvent refined gained Rs 25 to Rs 1,475-1,485 per tin.

Mustard expeller oil (Dadri) rose by Rs 50 to Rs 5,350 per quintal and its pakki and kachi ghani oils traded marginally higher by Rs 5 each to Rs 715-870 and Rs 870-970 per tin on local demand.