Edible oils down on weak global cues

Edible oils continued their slide at the wholesale oils and oilseeds market for the second straight week largely in line with a weak global trend amid a subdued demand from millers and local parties.

A few oils in the non-edible segment also showed weakness due to reduced offtake by consuming industries.

Trading sentiment in edible oils remained weak as palm oil plunged in the global markets, after palm oil declined to the lowest level in six weeks on speculation that inventories in Malaysia, the second-largest grower, may expand from the highest level in 16 months as production accelerates.

Also, slackened demand from millers and local parties at the spot market too dampened the sentiment, traders said.

Meanwhile, palm oil futures during the week declined by 2.1 per cent to $1,034 a tonne, the lowest closing level since May 6 on the Malaysia Derivatives Exchange.

In the edible section, mustard expeller oil (Dadri) remained under pressure for the major part of the week, to close Rs 70 down at Rs 5,730 per quintal.

Mustard pakki and kachi ghani oils followed suit and declined by Rs 5 each to Rs 755-910 and Rs 910-1,010 per tin of 15 litres, respectively.

Groundnut mill delivery (Gujarat) oil, after moving in a narrow range in restricted activity, finished lower by Rs 100 at Rs 8,000 per quintal while groundnut solvent shed Rs 25 to end at Rs 1,400-1,410 per tin.

Tracking weakness in other edible oils, sesame mill delivery and cottonseed mill delivery (Haryana) oils lost Rs 30 each to Rs 6,200 and Rs 5,500 per quintal, respectively.

In tandem with a weak global trend, soyabean refined mill delivery (Indore) and soyabean degum (Kandla) oils declined by Rs 80 each to Rs 6,220 and Rs 5,820 per quintal, respectively.

Crude palm oil (ex-kandla) eased by Rs 100 to Rs 5,200 per quintal, while palmolein (RBD) and palmolein (Kandla) oils also drifted by Rs 130 each to Rs 5,700 and Rs 5,400 per quintal, respectively.

In the non-edible sedction, linseed oil fell by Rs 50 to Rs 4,500 per quintal due to slackened demand from paint industries.

Similarly, neem oil traded lower by Rs 50 to Rs 4,100-4,200 per quintal while castor oil remained flat at Rs 8,500-8,600 per quintal.

GRAINS: Wheat showed some firmness as the prices traded higher at the wholesale grains market during the past week on increased offtake by flour mills and retailers to meet the ongoing marriage season demand and record procurement of the grain by the government.

Bajra, maize and barley also found some support from consuming industries and edged up modestly.

However, rice basmati and non-basmati lacked the necessary follow-up support and surrendered moderate ground.

Traders said increased offtake by flour mills, driven by the ongoing marriage season demand helped wheat dara prices to trade higher but record procurement by the government restricted the gains.

Meanwhile, wheat procurement in the ongoing procurement year so far has touched a record 26.43 million tonnes.

In the national capital, wheat dara (for mills) gained Rs 20 to 1,200-1,205 per quintal. Atta chakki delivery followed suit and traded higher by the same margin to Rs 1,205-1,210 per 90 kg.

Bajra also shot up by Rs 40 to Rs 1,040-1,050 per quintal, while maize and barley inched up by Rs 10 each to Rs 1,210-1,220 and Rs 1,260-1,285 per quintal, respectively.

In the rice section, rice basmati Pusa-1121 variety traded lower at Rs 4,000-4,800 against the last close of Rs 4,000-5,000 per quintal.

Adequate stocks against sluggish retailers demand led to decline in wholesale basmati and non-basmati rice prices.

Permal raw, wand, sela and IR-8 were down by Rs 25 each to Rs 1,800-1,850, Rs 1,975-2,075, Rs 2,075-2,125 and Rs 1,675-1,700 per quintal, respectively.

PULSES: Prices of select pulses rose in the national capital during the week on emergence of buying by stockists and retailers, driven by pick-up in demand.

However, masoor and its dal showed weakness due to sluggish demand against adequate stocks position.

Traders said increased buying by stockists, triggered by rise in demand amid less arrivals, mainly led to the rise in select wholesale prices of pulses.

They said, however, adequate stocks position against lack of buying support helped masoor and its dal prices to trade lower.

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, urad and dal chilka local rose Rs 100 each to Rs 4,000-4,400 and Rs 4,900-5,300 per quintal, respectively, while dal best quality and dhoya varieties were trading higher by the same margin at Rs 5,400-5,900 and Rs 5,350-5,450 per quintal, respectively.

Rajma chitra (Pune) and red varieties rose Rs 50 each to Rs 3,550-3,950 and Rs 3,850-3,950, while its China variety edged up to Rs 3,900-4,150 against the last close of Rs 3,600-4,100 per quintal, respectively.

Kabli gram small gained Rs 50 to Rs 5,250-6,750 and peas white and green traded higher by Rs 25 each to Rs 2,125-2,225 and Rs 2,275-2,475 per quintal, respectively.

Gram rose Rs 25 to Rs 2,500-2,525 and its dal local and best quality traded higher by Rs 50 each to Rs 2,950-2,965 and Rs 3,050-3,175 per quintal, respectively.

On the other hand, masoor small and bold fell by Rs 200 each to Rs 2,750-2,950 and Rs 2,900-3,150 per quintal. Its dal local and best quality moved down by Rs 250 each to Rs 3,250-3,350 and Rs 3,550-3,850 per quintal, respectively.

SUGAR: Amid large stocks position following ample supplies from mills, the wholesale sugar prices fell by up to Rs 40 per quintal during the week under review in the national capital.

However, some seasonal demand due to rise in the mercury and marriage season, restricted the losses.

Marketmen said apart from comfortable stocks position in the market following supply pressure from mills, bumper sugarcane production this year, also put pressure on the sugar prices.

Sugar spot medium and second grade after opening flat at Rs 2,900-3,000 and Rs 2,870-2,990 per quintal on some support, met with resistance due to heavy stocks and slipped to close at Rs 2,880-2,960 and Rs 2,850-2,960, showing a net loss of Rs 40 per quintal.

Mill delivery medium and second grade, in a similar fashion, finished Rs 40 lower at Rs 2,680-2,850 and Rs 2,650-2,825 per quintal, respectively after opening steady at Rs 2,700-2,850 and Rs 2,675-2,865.

Among millgate excluding duty section, sugar Asmoli and Mawana lost Rs 40 each to Rs 2,810 and Rs 2,760 per quintal.

Titabi, Budhana and Dorala also went down by Rs 40 each to Rs 2,770, Rs 2,660 and Rs 2,760 per quintal. Kinnoni and Thanabhavan too moved down by Rs 30 each to Rs 2,830 and Rs 2,670 per quintal.

JAGGERY: Quiet conditions persisted at the wholesale gur (Jaggery) market in the national capital during the week under review with prices, by and large, maintained at previous level after moving in a tight rage on some support.

On the other hand, gur chakku in Muzuffarnagar and pedi in Muradnagar declined due to increased supplies along with fall in demand.

Marketmen said increased supplies coupled with slackness in demand, caused the downfall in gur chakku and pedi prices at Muzufdarnagar and Muradnagar.

In Muzuffarnagar, gur chakku dropped by Rs 25 to settle at Rs 2,325-2,500 compared to the last week’s close of Rs 2,350-2,525 per quintal.

While gur raskat prices ruled quiet throughout the week on some support at Rs 2,200-2,300 per quintal.

At Muradnagar, gur pedi showed a fall of Rs 50 at Rs 2,650-2,750 compared from last week’s close of Rs 2,700-2,750 per quintal on sluggish demand.

Meanwhile, the prices of gur dhayya were not quoted due to absence of stocks.

At Delhi, gur chakku and pedi prices continined to be asked at the previous closing levels on some support at Rs 2,700-2,800 and Rs 2,900-3,000 per quintal.

Gur dhayya and shakkar prices too remained quiet at Rs 3,100-3,200 each per quintal.

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