Select edible oils rebound on millers buying, global cues

Select edible oils, led by groundnut oil, rebounded on the oils and oilseeds market during the past week, on emergence of buying by vanaspati millers and retailers, driven by a firming trend in global markets.

However, mustard oil lacked necessary buying support and declined. In the non-edible section, castor and linseed oil improved on increased industrial offtake.

Trading sentiment in select edible oils turned better after palm oil advanced in Malaysia for the week, on concern that heavy rains in Asia connected with the La Nina weather phenomenon could reduce output, boosting prices.

La Nina is a coupled ocean-atmosphere phenomenon, which causes a wet period in the areas. Traders said apart from revival in buying from vanaspati millers and retailers and reports of a firming trend in global markets led to a rise in select wholesale edible oil prices.

Besides, reports of vegetable oil imports fell for the fifth consecutive month in May by 26 per cent to 5.58 lakh tonnes due to increased supply, the Solvent Extractors Association (SEA) said.

In the edible section, groundnut mill delivery oil gained the most by rising Rs 200 to Rs 7,300 per quintal on higher advices from Gujarat. Groundnut solvent refined oil also shot up by Rs 40 to Rs 1,200-1,210 per tin of 15 litres on retailers demand.