Edible oils fall on sluggish demand, global cues

PTI New Delhi | Updated on March 12, 2011

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

Few oils in the non-edible section also declined on reduced industrial offtake.

Trade sentiment turned bearish as palm oil dropped 8.1 per cent on the Malaysian Derivatives Exchange this week.

Traders said sluggish demand at prevailing higher levels in tandem with a weak trend overseas, mainly pulled down the edible oil prices.

Reduced offtake by consuming industries against adequate stocks put pressure on select non-edible oil prices, they added.

In the edible section, palmolein (kandla) and palmolein (rbd) oils plunged by Rs 210 and Rs 160 to Rs 5,560 and Rs 5,810 per quintal, respectively, on weak global trend.

Soyabean refined mill delivery (Indore) and soyabean degum (Kandla) fell by Rs 200 and Rs 120 to Rs 6,100 and Rs 5,800 per quintal, respectively. Similarly, crude palm oil (ex-kandla) lost Rs 170 to Rs 5,250 per quintal.

Cottonseed mill delivery (Haryana) and mustard expeller oils also moved down by Rs 130 and Rs 70 to Rs 5,650 and Rs 5,850 per quintal, respectively.

Mustard pakki and kachi ghani oils traded lower by Rs 10 each to Rs 765-920 and Rs 920-1020 per tin, respectively. Sesame mill delivery oil shed Rs 20 to Rs 6,380 per quintal.

In the non-edible oil section, linseed oil lost Rs 50 to Rs 4,600 per quintal on lack of demand from the paint industry.

Likewise, castor and neem oils also declined by Rs 50 each to Rs 8,650-8,750 and Rs 4,050-4,150 per quintal, respectively, on reduced industrial offtake.

GRAINS: Wheat dara and rice basmati prices continued to decline at the wholesale grains market during the week on subdued demand against sufficient supplies. However, other grains including bajra and maize, strengthened on sustained buying against tight supply.

Traders said subdued demand against adequate stocks position following increased arrivals from the producing region, mainly led to the fall in wheat dara and rice basmati prices.

Sustained buying by consuming industries against restricted arrivals from the producing region helped other grains prices to strengthen, they added.

In the national capital, wheat dara, mostly used by flour mills, remained weak and shed Rs 5 to Rs 1,315-1,320, while wheat deshi held steady at Rs 1,710-1,850 per quintal. Chakki atta followed suit and fell by Rs 5 to Rs 1,320-1,325 per 90 kg.

In the rice section, rice basmati common fell by Rs 100 to Rs 5,400-5,500 while Pusa-1121 variety shed Rs 150 to Rs 4,050-5,050 per quintal.

Non-basmati rice variety permal raw, wand, setla and IR-8 were also traded lower by Rs 25 each to Rs 1,850-1,900, Rs 2,050-2,150, Rs 2,100-2,175 and Rs 1,750-1,775 per quintal, respectively.

On the other hand, maize remained in demand and advanced by Rs 45 to Rs 1,240-1,250 per quintal. Similarly, Barley (UP) traded higher by Rs 10 to Rs 1,310-1,330 and bajra went up by Rs 35 to Rs 875-885 per quintal.

Published on March 12, 2011

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