Edible oils drop on sluggish demand, global cues

Edible oil prices dropped at the wholesale oils and oilseeds market during the past week due to slackness in demand at existing higher levels amid weakening global trend.

The sentiment turned bearish as palm oil tumbled to its three-month low in the global markets on speculations that output in Malaysia, the second-largest producer, may grow this year.

Traders said adequate stocks available in the market against fall in demand from millers and local parties at existing levels also weighed on the edible oil prices.

Reduced offtake by consuming industries amid increased supplies led to the fall in select non-edible oil prices, they added.

In the edible section, crude palm oil (ex-kandla) suffered the most and dropped by Rs 290 to Rs 5,360 per quintal in tandem with a weakening trend overseas.

Palmolein (RBD) and Palmolein (Kandla) followed suit and tumbled by Rs 280 and Rs 230 to Rs 5,920 and Rs 5,720, respectively.

Soyabean refined mill delivery (Indore) and soyabean degum (Kandla) fell by Rs 180 and Rs 150 to Rs 6,260 and Rs 5,900 per quintal, respectively.

In line with a general weakening trend, groundnut mill delivery oil (Gujarat) fell by Rs 100 to Rs 7,400 per quintal and groundnut solvent refined lost Rs 70 to Rs 1,300-1,310 per tin. Cottonseed mill delivery oil (Haryana) lost Rs 100 to Rs 5,750 per quintal.

In the non-edible section, linseed oil declined by Rs 50 to Rs 4,600 per quintal due to inadequate demand from paint units. Castor oil also shed Rs 50 to Rs 8,700-8,800 per quintal.

GRAINS: Wheat and its product prices moved up at the wholesale grains market during the past week on fresh buying by flour mills, to meet the ongoing marriage season demand.

Wheat production is likely to exceed the current estimate by 2.5 million tonnes to touch 84 mt. Some other bold grains also strengthened on increased demand against restricted supplies.

Traders said buying by flour mills to meet the ongoing marriage season demand mainly led to the rise in wheat and its product prices but higher production estimates restricted the gains.

In the national capital, wheat dara (for mills) rose by Rs 10 to Rs 1,340-1,345 per quintal. Atta chakki delivery followed suit and traded higher by the same margin to Rs 1,345-1,350 per 90 kg.

Maida and sooji also moved up by Rs 10 and Rs 20 to Rs 790-820 and Rs 820-840 per 50 kg, respectively, in line with the rise in wheat prices. Bajra and maize gained Rs 30 and Rs 20 to Rs 835-845 and Rs 1,175-1,185 per quintal, respectively.

Jowar yellow and white rose by Rs 25 each to Rs 875-975 and Rs 1,700-1,750, respectively, while barley inched up by Rs 10 to Rs 1,260-1,280 per quintal.

PULSES: In a mixed pattern of trading, select commodities declined at the wholesale pulses market during the past week on adequate stocks, following increased arrivals against sluggish demand, while a few others showed strength on buying support from retailers driven by the ongoing marriage season.

Traders said adequate stocks against subdued demand mainly led to a fall in select wholesale pulses prices in the national capital.

Expectations of higher production this year also put some pressure on select pulses prices, they said.

Meanwhile, state-run trading company STC invited bids for the import of 12,000 tonnes of pulses for sale in the domestic market.

Masoor small and bold declined by Rs 100 each to Rs 3,200-3,300 and Rs 3,350-3,600, while dal masoor local and best quality lost Rs 200 each to Rs 3,800-3,900 and Rs 4,050-4,350 per quintal.

Malka local and best shed Rs 100 each to Rs 3,800-3,850 and Rs 3,950-4,050 and arhar and its dal dara variety were also traded lower by Rs 50 each to Rs 3,800-3,900 and Rs 5,150-5,550 per quintal.

On the other hand, urad rose to Rs 4,150-4,650 against the last close of Rs 4,050-4,600 per quintal. Its dal chilka local,best quality and urad dal dhoya were down by Rs 50 each to Rs 5,050-5,450, Rs 5,600-5,900 and Rs 5,550-5,650 per quintal, respectively.

Gram and its dal local and best quality traded higher by Rs 2,575-2,600, Rs 2,900-2,915 and Rs 3,000-3,100 against the last close of Rs 2,555-2,580, Rs 2,875-2,890 and Rs 2,975-3,075 per quintal.

Kabli gram small variety too traded higher by Rs 100 to Rs 4,200-5,600 per quintal.

SUGAR: In an otherwise steady wholesale sugar market, mill gate prices declined up to Rs 40 per quintal in the national capital, during the week under review, following ample stocks position on increased supply from mills.

Market analysts said besides adequate stocks position on increased month-end selling by mills, allotment of free sale sugar quota for March also put pressure on the mill gate sugar prices.

Higher demand due to the marriage season, however, capped the losses and prevented further falling of prices, they said.

Meanwhile, the government released free sale sugar quota of 1.68 million for the month of March.

The millgate sugar excluding duty section, Kinnoni and Asmoli varieties, dropped by Rs 40 each to Rs 2,850 and Rs 2,830 per quintal, respectively. Budhana and Dorala sugar dipped by Rs 25 each to Rs 2,750 and Rs 2,800 per quintal, respectively.

Mawana sugar lost by Rs 30 to Rs 2,810, while Thanabhavan sugar prices declined by Rs 20 to Rs 2,760 per quintal. Prices of other sweetener remained steady in limited deals, analysts added.

Sugar ready medium and second grade ruled flat through the week on some support at Rs 2,940-3,065 and Rs 2,915-2,940 per quintal, respectively.

Mill delivery medium and second grade prices also maintained the last week’s closing levels of Rs 2,700-2,850 and Rs 2,685-2,825 per quintal, respectively.

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