Commodities

Edible oils up on seasonal demand, global cues

PTI New Delhi | Updated on March 05, 2011

Edible oils staged a good comeback to close higher at the oils and oilseeds market during the past week on fresh buying by vanaspati mills and retailers, driven by the ongoing marriage season amid a firming global trend.

A few non-edible oils also showed strength on increased demand from the consuming industries.

The market remained closed on Wednesday on account of ?Maha Shivratri?.

Trading sentiment turned better after palm oil strengthened in the global markets as the rising crude oil prices raised the appeal of vegetable oils used in biofuels.

Meanwhile, palm oil futures rose 4.1 per cent to $1,209 a tonne this week at the Malaysia Derivatives Exchange, the highest close in more than a week.

Traders said fresh buying by millers and retailers to meet the increased demand, triggered by marriage season, and a firming trend in the overseas market, mainly led to recovery in the wholesale edible oil prices in the national capital.

Increased offtake by industrial units and other consuming industries helped some non-edible oil prices to trade higher, they said.

Mustard expeller oil (Dadri) jumped by Rs 20 to Rs 6,020 per quintal. Mustard pakki and kachi ghani oils also traded higher by Rs 5 each to Rs 775-930 and Rs 930-1,030 per tin, respectively. Cottonseed mill delivery (Haryana) oil also found some buying support and advanced by Rs 20 to Rs 5,770 per quintal.

Tracking firm trend overseas, soyabean refined mill delivery (Indore) and soyabean degum (Kandla) oils moved up by Rs 40 and Rs 20 to Rs 6,300 and Rs 5,920, respectively, while crude palm oil (ex-kandla) gained Rs 60 to Rs 5,420 per quintal.

Palmolein (rbd) and palmolein (Kandla) went up by Rs 50 each to Rs 5,970 and Rs 5,770 per quintal, respectively.

In the non-edible section, linseed oil rose by Rs 50 to Rs 4,650 per quintal on fresh enquiries from the paint industry. Neem oil also moved up by Rs 50 to Rs 4,100-4,20 per quintal on increased offtake by soap units.

GRAINS: Prices of wheat and rice basmati fell at the wholesale grains market during the past week on reduced offtake by stockists against adequate stocks. However, other grains including bajra and maize attracted fresh buying support and recorded moderate gains.

Traders said adequate stocks position following increased arrivals from the producing belts against lack of buying support, mainly led to the fall in wheat and rice basmati prices. Fresh buying by stockists and other consuming industries amid slow down in arrivals helped other bold grains prices to move up, they said.

In the national capital, wheat dara (for mills) which is mostly consumed by flour mills declined by Rs 20 to Rs 1,320-1,325 per quintal. Atta chakki delivery followed suit and traded lower by the same margin to close the week at Rs 1,325-1,330 per 90 kg, while atta flour mills lost Rs 20 to Rs 680-700 per 50 kg.

In the rice section, rice basmati common which held steady during the major part of week, turned weak on increased arrivals and declined by Rs 100 to Rs 5,500-5,600, while rice Pusa-1121 variety shed Rs 50 to Rs 4,200-5,200 per quintal.

On the other hand, jowar yellow rose by Rs 25 and jowar white gained Rs 50 to end at Rs 900-1,000 and Rs 1,750-1,800, respectively. Bajra gained Rs 10 to Rs 845-855 per quintal.

Similarly, maize moved up by Rs 20, while barley rose by Rs 40 to close at Rs 1,195-1,205 and Rs 1,300-1,320 per quintal, respectively.

Published on March 05, 2011

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like