Select edible oils extend gains on seasonal demand

Select edible oil prices continued their upward movement at the wholesale oils and oilseeds market during the past week on persistent buying by vanaspati millers, buoyed by the ongoing marriage season.

However, palmolein, crude palm oil and soyabean degum were down on weak global cues. Linseed and castor oils in the non-edible section moved up on the back of increased industrial offtake.

Market analysts said increased buying by vanaspati millers to meet the ongoing marriage season demand mainly helped select edible oil prices to strengthen. Adequate stocks and reports of weakening trend in global markets also weighed on the other edible oil prices, they said.

Palm oil futures prices fell by 6.9 per cent to $1,214 this week on the Malaysia Derivatives Exchange. There’s speculation that China may cut import tariffs on cooking oils made from palm, soyabeans and canola to 5 per cent from 9 per cent.

In the national capital, groundnut mill delivery oil (Gujarat) gained the most by rising Rs 150 to Rs 7,500 per quintal on higher advices from Gujarat. Groundnut solvent refined followed suit and gained Rs 20 to Rs 1,370-1,380 per tin.

Mustard expeller oil (Dadri) attracted local buying support and shot up by Rs 100 to Rs 6,020 per quintal. Mustard pakki and kachi ghani oils traded higher by Rs 10 each to Rs 780-935 and Rs 935-1,035 per tin. Cottonseed mill delivery (Haryana) oil too traded in positive zone with a gain of Rs 30 to Rs 5,850 per quintal.

On the other hand, palmolein (rbd) and crude palm oil (ex-kandla) oils declined by Rs 50 each to Rs 6,200 and Rs 5,650 per quintal, respectively on weakening global trend. Soyabean degum (Kandla) eased to Rs 6,050 against last close of Rs 6,100 per quintal.

In the non-edible section, linseed oil gained Rs 50 to Rs 4,650 per quintal on fresh enquiries from paint industries. Castor oil also went up by Rs 50 to Rs 8,750-8,850 per quintal on increased industrial offtake, while neem oil lost Rs 50 to Rs 4,050-4,150 per quintal on lack of buying support.

GRAINS: In restricted activity, rice basmati prices declined at the wholesale grains market during the week under review on reduced offtake by stockists and retailers against adequate stocks in the market on increased arrivals.

Jowar white and barley also eased on lack of buying support against sufficient stocks. However, maize moved up on increased demand from poultry units and other consuming industries.

In the national capital, rice basmati Pusa-1121 variety lacked necessary buying support and lost Rs 50 to Rs 4,250-5,250 per quintal. Jowar white also drifted by Rs 25 to Rs 1,675-1,725, while jowar yellow held steady at Rs 850-950 per quintal. Barley too traded in negative zone with a loss of Rs 10 to Rs 1,250-1,270 per quintal.

On the other hand, maize advanced by Rs 15 to Rs 1,155-1,165 per quintal on increased demand from poultry industries. Wheat MP (deshi) and wheat dara (for mills) maintained its previous level of Rs 1,710-1,860 and Rs 1,335-1,340 per quintal.

PULSES: Weak conditions developed at the wholesale pulses market during the week under review, as most of the commodities, led by urad and moong, fell on emergence of selling by stockists owing to a fall in demand at the prevailing higher levels.

Comfortable stocks position on increased arrivals from the producing regions also put pressure on the pulses prices.

Traders said fresh selling by stockists on sluggish demand at existing higher levels against adequate stocks pulled down wholesale pulses prices.

Meanwhile, state-run trading firm PEC Ltd invited bids for importing 856 tonnes of pulses for supply in the domestic market.

In the national capital, urad fell by Rs 200 to Rs 4,050-4,600, while urad dal dhoya shed Rs 100 to Rs 5,500-5,600 per quintal. Moong and its dal chilka local traded lower by Rs 100 each to Rs 4,100-4,500 and Rs 5,150-5,550 per quintal.

Masoor small and bold also weakened by Rs 100 each to Rs 3,300-3,500 and Rs 3,450-3,700 per quintal. Its dal local and best quality drifted by Rs 150 each to Rs 4,000-4,100 and Rs 4,250-4,550, while malka local and best quality lost Rs 150 each to Rs 3,900-3,950 and Rs 4,050-4,150 per quintal.

In line with a general weakening trend, arhar and its dal dara variety declined by Rs 200 each to Rs 3,850-4,950 and Rs 5,200-5,600 per quintal.

Gram moved down by Rs 145 to Rs 2,555-2,580, while its dal chilka local and best quality shed Rs 75 each to Rs 2,875-2,890 and Rs 2,975-3,075 per quintal. Kabli gram small weakened by Rs 50 to Rs 4,100-5,500 per quintal. Peas white and green softened by Rs 50 each to Rs 2,150-2,250 and Rs 2,250-2,450 per quintal.