MUMBAI (Commodity Online):For the last few days, prices have shown improvement due to short covering and fresh buying support. Earlier sharp correction was seen.
Physical market demand has also picked up ahead of the major festival Deepawali. SEA of India released data relating to edible oil im-port for the during of September 2011.
Import of edible oil increased by 12 % during September as compared to the previous month. A quantum jump is seen in the import of refined oils (75%) while the import of Crude Oil increased marginally by 5% as compared to previous month.
The increment was seen mainly due to the fact that the stocks of the edible oils as on 1 Sept was reduced by 11 % which encouraged Importers to increase buying. Fur-ther revised export tax structure on edible oils by the Indonesia also encouraged the buyers. Further, cost of imported oil also fell by 2 to 5 % on Indian port. All these factors resulted in increase in the edible oil imports.
On Monday prices are expected to open weak but that must be considered as a good buying opportunity.
