Edible oils decline on sluggish demand, global cues

Extending losses for the fourth week in a row, edible oil prices declined further at the wholesale oils and oilseeds market due to sluggish demand at existing high levels amid weak global trend.

Some oils in the non-edible section also showed weakness on reduced offtake by industrial units and other consuming industries.

Trading sentiment turned weak as palm oil slumped to the lowest level in more than eight months in the global markets after a US report showed larger-than-expected soybean inventories, and as a decline in crude oil prices cut the appeal of vegetable oils as bio-fuels.

Palm oil fell 2.6 per cent to $1,009 a tonne this week on the Malaysia Derivatives Exchange, a fifth weekly loss, the longest streak in almost three years.

Besides, sluggish domestic demand at prevailing levels further fuelled the downtrend.

In the edible oil section, mustard expeller oil (Dadri) eased by Rs 20 to Rs 5,680 per quintal, while sesame and cottonseed mill delivery oils (Haryana) fell by Rs 30 and Rs 10 to Rs 6,150 and Rs 5,440 per quintal, respectively.

Taking weak cues from overseas markets, soyabean refined mill delivery (Indore) and soyabean degum (Kandla) oils moved down by Rs 50 and Rs 60 to Rs 6,150 and Rs 5,750, while crude palm oil (kandla) lost Rs 30 to Rs 5,150 per quintal, respectively.

Palmolein (rbd) and palmolein (kandla) oils too traded in negative zone with a loss of Rs 30 each to Rs 5,650 and Rs 5,350 per quintal, respectively.

In the non-edible section, neem oil declined by Rs 50 to Rs 4,050-4,150 per quintal.

Grains: In thin trading, wheat and its product prices rose at the wholesale grains market during the past week, driven by fresh buying by flour mills but record procurement by the Government capped the gains.

However, maize and barley showed weakness due to reduced industrial offtake against adequate stocks position.

Marketmen said the rise in wheat dara prices was mostly attributed to fresh buying by flour mills. Adequate stocks position against reduced industrial demand helped maize and barley prices to decline.

Wheat dara (for mills), which was mostly consumed by flour mills, moved up by Rs 15 to Rs 1,195-1,200 per quintal. Atta chakki delivery followed suit and traded higher by the same margin at Rs 1,200-1,205 per 90 kg.

Maida also gained Rs 50 to Rs 700-730 per 50 kg in line with wheat trend.

On the other hand, maize and barley prices fell by Rs 40 and Rs 20 to Rs 1,120-1,130 and Rs 1,190-1,215 per quintal, respectively.

Pulses: The wholesale pulses market depicted a mixed trend during the past week with the prices of select pulses rising on demand from retailers amid restricted arrivals, while a few others remained weak due to lack of buying support.

Traders said pick-up in demand from retailers against restricted arrivals mainly led to the rise in select wholesale pulses prices.

Adequate stocks position against lack of buying support helped other prices to remain weak, they said.

Meanwhile, state-owned trading firm PEC invited bids for the import of 6,000 tonnes of pulses for sale in the domestic market.

In the national capital, gram rose Rs 75 to Rs 2,600-2,625 and its dal local and best quality Rs 100 and Rs 125 to Rs 3,100-3,115 and Rs 3,225-3,350 per quintal, respectively.

Rajmah chitra (Pune) and its red variety moved up by Rs 100 each to Rs 3,900-4,300 and Rs 4,200-4,300 per quintal, respectively.

Peas white and green also found increased demand and traded higher by Rs 75 each to Rs 2,200-2,300 and Rs 2,350-2,550 per quintal, respectively.

On the other hand, urad and its dal chilka local declined by Rs 100 and Rs 150 to Rs 3,850-4,250 and Rs 4,700-5,100, while urad dal best quality and dhoya were down by Rs 100 and Rs 200 to Rs 5,300-5,800 and Rs 5,150-5,250 per quintal, respectively.

Arhar and its dal dara variety lost Rs 100 each to Rs 3,150-3,650 and Rs 4,750-5,150 per quintal, respectively.

Dry Fruits: Wholesale prices of select dry fruits quoted lower in the national capital during the past week on reduced offtake and weakening trend in overseas markets.

Increased selling by stockists coupled with higher arrivals from overseas markets created adequate stock position and partly put pressure on the dry fruit prices.

Almond california prices drifted by Rs 100 to close at Rs 10,600 per 40 kg and its kernel also fell by Rs 5 to Rs 375-385 per kg on lack of buying support.

Cashew kernel (No 180, 210, 240 and 320) prices declined up to Rs 10 to Rs 650-670, Rs 600-620, Rs 545-570 and Rs 500-550 per kg, respectively.

Copra prices traded lower at Rs 7,400-7,600 from the previous mark of Rs 7,500-7,600 per quintal on reduced offtake.

Pistachio (hairati and peshwari) prices also fell up to Rs 30 to settle at Rs 870-890 and Rs 1,080-1,100 per kg, respectively

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