Thank you so much for sharing this information. I have 3 litres of cold pressed coconut oil bought for cooking but it has got a little foul smell now. I was so much worried as I have to throw it away. After going through this post, I'm really happy and gonna make soap out of it. While I was searching on how to reuse rancid oils I came across this post.I have tried that tip and it works very well.
http://handmadesoapcoach.com/dont-throw-out-that-rancid-oil-make-soap/
I read that we can directly make soap out of rancid oils with no lye discount. I think this is more easier. Actually I'm planning to make a laundry soap bar. So I'll try this and will update. Thank you..