Edible oil prices ease on sluggish demand, weak global cues

Edible oil prices declined at the wholesale oils and oilseeds market during the past week on sluggish demand at existing higher levels and a weakening global trend.

A few non-edible oils also moved down on reduced offtake by industrial units and other consuming industries. Increased arrivals from the producing regions also kept pressure on the prices.

Trading sentiment turned bearish as palm oil declined after soyabeans and corn fell on slowing demand for US supplies. Also, improved weather conditions boosted the cooking oil’s supply prospects from the world’s top producers.

Meanwhile, palm dropped 1.7 per cent in April to $1,093 a tonne on the Malaysia Derivatives Exchange.

Traders said subdued demand at prevailing higher levels in tandem with a weak trend overseas led to the decline in wholesale edible oil prices. Expectations of higher production of oilseeds also put pressure on the edible oil prices.

State-owned trading firm PEC floated a tender to import 15,000 tonnes of RBD palmolein for sale in the domestic market.

In the edible section, soyabean refined mill delivery (Indore) and soyabean degum (Kandla) oils fell by Rs 70 each to Rs 6,100 and Rs 5,750, respectively. Crude palm oil (ex-kandla) lost Rs 30 to Rs 5,180 per quintal, respectively.

Palmolein (RBD) and palmolein (Kandla) also declined by Rs 50 each to Rs 5,720 and Rs 5,420 per quintal, respectively. Cottonseed mill delivery (Haryana) oil too traded in a negative zone with a loss of Rs 30 to Rs 5,470 per quintal.

Groundnut mill delivery (Gujarat) and mustard expeller oil (Dadri) moved in a tight range on alternate bouts of trading and settled around the previous levels of Rs 8,000 and Rs 5,400 per quintal, respectively.

In the non-edible section, linseed oil declined by Rs 50 to Rs 4,550 per quintal on lack of enquiries from paint industries. Castor oil shed Rs 50 to Rs 8,500-8,600 per quintal.

GRAINS: Wheat and other grains showed some weakness as their prices declined at the wholesale grains market during the past week on supply pressure amid subdued demand.

Traders said adequate stocks position following arrivals of new crop mainly led to the fall in wheat prices. Expectations of a bumper crop this season also put pressure on the prices.

In the national capital, wheat dara (for mills) declined by Rs 5 to Rs 1,175-1,180 per quintal. Atta chakki delivery followed suit and traded lower by Rs 10 to Rs 1,190-1,195 per 90 kg.

In the rice section, rice basmati common declined by Rs 50 to Rs 5,600-5,700 per quintal. Similarly, bajra shed Rs 10 while maize fell by Rs 30 to close at Rs 990-1,000 and Rs 1,050-1,360 per quintal, respectively.

On the other hand, barley prices were up by Rs 15 to Rs 1,050-1,055 per quintal on scattered buying by consuming industries.

PULSES: In a mixed pattern of trading, select pulses led by urad recovered at the wholesale pulses market during the past week on pick-up in demand from retailers while a few others remained weak on adequate stocks position and shed further ground.

Market analysts said scattered demand from retailers helped select wholesale pulses prices to recover while some others declined on adequate stocks positions.

Urad and its dal chilka local prices found some support from retailers and recovered by Rs 50 each to Rs 4,000-4,400 and Rs 4,900-5,300, respectively.

Urad dal best quality and dhoya traded higher by the same margin at Rs 5,400-5,900 and Rs 5,350-5,450 per quintal, respectively. Kabli gram small gained Rs 100 to Rs 4,600-6,100 per quintal.

Masoor small and bold rose Rs 50 each to Rs 3,100-3,300 and Rs 3,250-3,500, respectively. Its dal local and best quality traded higher by a same margin to Rs 3,650-3,750 and Rs 3,950-4,250 per quintal, respectively.

Peas white and green were also in demand and inched up by Rs 25 each to Rs 2,075-2,175 and Rs 2,225-2,425 per quintal, respectively.

On the other hand, malka local and best quality fell by Rs 100 each to Rs 3,500-3,550 and Rs 3,650-3,750 per quintal, respectively. Moth which remained steady during the major part of week, lost Rs 100 to close at Rs 2,100-2,400 per quintal on adequate supply.

JAGGERY: The wholesale jaggery market revealed a firm trend as gur prices shot up by Rs 400 per quintal during the week under review on frantic buying by stockists against low stocks position.

Market analysts said low availability of sugarcane after millers picked up most of the crop from the open market, led to the fall in gur production.

They added that pick-up in demand among local juice makers due to rising mercury, further tightened the stocks position of sugarcane.

In Delhi, gur chakku prices shot up by Rs 400 to Rs 2,700-2,800 per quintal. Gur pedi and dhayya prices also climbed by Rs 300 each to Rs 2,800-2,900 and Rs 2,900-3,000 per quintal, respectively.

Shakkar prices also surged by Rs 300 to Rs 3,000-3,100 per quintal.

In Muzzafarnagar, gur chakku rose Rs 400 to Rs 2,450-2,550 from Rs 2,050-2,250 per quintal, while gur khurpa gained Rs 350 to Rs 2,450-2,500 per quintal.

Gur raskat also jumped up by Rs 375 to Rs 2,250-2,375 per quintal on frantic buying by alcohol and cattle feed makers.

In Muradnagar, gur pedi and dhayya were quoted higher from Rs 2,250-2,350 and Rs 2,500-2,550 to Rs 2,550-2,625 and Rs 2,550-2,650, respectively.

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