Select oils recover on festive demand, global cues

PTI New Delhi | Updated on March 19, 2011 Published on March 19, 2011

Edible oil being filtered through a funnel. (file photo)

Select edible oils recovered to close higher at the oils and oilseeds market during the past week, on fresh buying by vanaspati mills and retailers, driven by the festive season amid a firming global trend.

However, sesame mill delivery oil fell owing to lack of buying support. Neem oil in the non-edible section, traded lower on reduced offtake by soap units.

Trading sentiments in select edible oils turned better as palm oil advanced in the global markets, tracking a surge in soyabeans, on concerns that rain in Brazil may damage the oilseed crop.

Meanwhile, palm oil futures rebounded 1.6 per cent to $1,121 per tonne this week on the Malaysian Derivatives exchange after plunging over 8 per cent last week.

Traders said fresh buying by millers and retailers to meet the Holi festival demand and a firming trend in the overseas market, led to recovery in wholesale edible oil prices at the national capital.

Reduced offtake by industrial units and other consuming industries helped select non-edible oil prices to trade higher, they added.

In the edible section, mustard expeller oil (Dadri) rose by Rs 20 to Rs 5,870 per quintal, while mustard pakki and kachi ghani oils traded higher by Rs 5 each to Rs 770-925 and Rs 925-1,025 per tin, respectively.

Soyabean refined mill delivery (Indore) and soyabean degum (Kandla) gained Rs 10 each to Rs 6,110 and Rs 5,810, respectively.

Likewise, palmolein (rbd) and palmolein (Kandla) traded higher by Rs 10 each to Rs 5,810 and Rs 5,570 per quintal, respectively. Crude palm oil (ex-kandla) edged up by Rs 10 to Rs 5,260 per quintal. Coconut oil, also seen in demand, advanced by Rs 100 to Rs 1,600-1,660 per tin.

Meanwhile, groundnut mill delivery (Gujarat) held steady at Rs 7,400 per quintal. Groundnut solvent refined (per tin) also hovered around the previous level of Rs 1,300-1,310 per tin in restricted buying. On the other hand, sesame mill delivery oil lacked necessary buying support and declined by Rs 130 to Rs 6,250 per quintal.

In the non-edible section, in limited deals, neem oil declined by Rs 50 to Rs 4,000-4,100 per quintal.

GRAINS: Wheat and its product prices declined at the wholesale grains market during the past week on increased arrivals in the market, amid expectations of record production.

Rice basmati and other bold grains prices, however, rose on the back of pick-up in demand against limited arrivals.

Traders said adequate stocks following increased arrivals in the market and hopes of record output this year mainly kept pressure on the wheat prices.

In the national capital, wheat dara, mostly used by flour mills, remained weak and lost another Rs 25 to Rs 1,290-1,295, while wheat deshi shed Rs 10 to Rs 1,700-1,850 per quintal.

Chakki atta followed suit and fell further by Rs 40 to Rs 1,280-1,285 per 90 kg, while atta flour mills lost Rs 30 to Rs 650-670 per 50 kg. Maida also weakened by Rs 10 to Rs 780-810 per 50 kg.

In the rice section, rice basmati Pusa-1121 variety gained Rs 50 to Rs 4,100-5,100 per quintal on retailers demand.

On the other hand, maize remained in demand and strengthened by Rs 60 to Rs 1,300-1,310 and barley up by Rs 25 to Rs 900-910 per quintal. Jowar yellow and white spurted by Rs 75 each to Rs 975-1075 and Rs 1,825-1,875 respectively, and bajra gained Rs 25 to Rs 900-910 per quintal.

PULSES: In restricted buying activity, gram and rajmah chitra prices traded marginally higher at the wholesale pulses market during the past week on scattered buying by retailers.

Dal malka, however, declined on subdued demand.

Gram rose by Rs 25 to Rs 2,550-2,575 while its dal local and best quality traded higher by the same margin to Rs 2,825-2,840 and Rs 2,925-3,025 per quintal, respectively.

Rajmah chitra (Pune) and (China) were also seen in demand and gained Rs 50 each to Rs 3,350-3,750 and Rs 3,450-3,950 per quintal, respectively.

On the other hand, malka local and best quality remained weak and lost another Rs 100 each to Rs 3,600-3,650 and Rs 3,750-3,850 per quintal, respectively.

Elsewhere, other pulses prices moved in a narrow range on alternate bouts of trading and settled around the previous levels.

SUGAR: Wholesale sugar prices revealed a firm tendency during the week under review following heavy demand against restricted supply, and closed higher with gains of up to Rs 35 per quintal.

Market analysts said strong demand due to the marriage season and Holi festival, mainly pushed up sugar prices.

Rising demand among softdrink and ice-cream manufacturers for the summer season also fuelled the uptrend, they added.

The Union Government raised the fair and minimum price (FRP) for sugar from Rs 139.20 to Rs 145 per quintal, which also helped the prices to pick up, they said.

On the other hand, bumper sugarcane production this year put pressure on rising prices and reduced the gains to some extent.

Sugar ready medium and second grade prices rose from Rs 2,920-3,050 and Rs 2,900-3,030 to Rs 2,950-3,075 and Rs 2,935-3,050, respectively, revealing a gain of Rs 35 per quintal.

Mill delivery medium and second grade prices also moved up from Rs 2,710-2,860 and Rs 2,700-2,825 to Rs 2,740-2,890 and Rs 2,725-2,850 per quintal, respectively.

In the millgate section, sugar Asmoli, Dorala and Kinnoni went up by Rs 35 each to Rs 2,875, Rs 2,835 and Rs 2,885 per quintal, respectively.

Sugar Mawana, Thanabhavan and Titabi rose by Rs 30 each to Rs 2,850, Rs 2,790 and Rs 2,840 per quintal, respectively.

JAGGERY: Gur prices rose in the wholesale jaggery market during the week under review following restricted supply amid increased offtake by retailers and stockist, and gained Rs 150 per quintal.

Muzaffarnagar gur market too showed a firming trend as gur raskat prices rose by Rs 100 on strong demand from beer making industries, while gur khurpa prices declined on slackness in demand.

Meanwhile, muradnagar gur market ruled flat throughout the week on some support.

Market analysts said fall in supply from manufacturing areas along with pick-up in demand from retailers and stockist, mainly influenced the trading sentiment and kept the prices higher.

In Delhi, gur dhayya shot up by Rs 150 to settle at Rs 2,450-2,500 per quintal against last week’s level of Rs 2,300-2350. Gur pedi prices gained by Rs 100 to Rs 2,400-2,450 from Rs 2,300-2,350 per quintal.

Gur chakku and shakkar prices moved up by Rs 50 each to Rs 2,300-2,350 and Rs 2,550-2,600 per quintal, respectively.

In Muradnagar, gur raskat prices traded higher from Rs 1,800-1,900 to Rs 1,875-2,000 per quintal on brisk demand from beer making units.

On the other hand, gur khurpa was quoted lower from Rs 2,000-2,050 to Rs 1,950-2,000 per quintal on reduced offtake, while gur chakku prices remained unchanged at Rs 2,050-2,250 on some support.

At Muradnagar, gur pedi and dhayya ruled flat at Rs 2,100-2,150 each on little doings.

DRY FRUITS: Almond and cashew prices declined at the wholesale dry fruits market during the week under review, mostly following fall in demand from local traders and stockists due to off-marriage season.

Increased arrivals from the producing belts also put pressure on the dry fruits prices.

Sentiments turned bearish following fall in demand from stockists and retailers at higher prices amid increased supplies.

Almond California prices fell by Rs 100 to finish at Rs 10,000 per 40 kg while its kernel traded lower by Rs 5 at Rs 350-360 per kg, from the previous week’s mark of Rs 355-360 per kg.

Cashew kernel (No 180, 210, 240 and 320) prices fell by up to Rs 15 to settle at Rs 625-635, Rs 590-595, Rs 525-530 and Rs 440-455, respectively, while its pieces (2 and 4) traded lower at Rs 380-430 and Rs 360-410 against previous mark of Rs 440-445 and Rs 390-425 per kg, respectively.

Copra prices dropped by up to Rs 300 to finish at Rs 7,300-7,400 per quintal.

Kishmish Indian yellow prices fell by Rs 200 to conclude at Rs 3,600-4,400 per 40 kg.Pistachio Irani, hairati and peshawari also fell by up to Rs 50 to finish at Rs 680-700, Rs 1,000-1,050 and Rs 1,250-1,300 per kg, respectively

Published on March 19, 2011
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