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Edible oils fall on sluggish demand, weak global cues

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Press Trust of India New Delhi
Last Updated : Jan 21 2013 | 3:13 AM IST

Select edible oil prices drifted at the wholesale oils and oilseeds market during the week under review, on sluggish demand from vanaspati millers amid a weakening trend in global markets. However, mustard oil found selective buying from the local parties and improved.

In the non-edible oil section, linseed and neem oils were also under pressure due to reduced offtake and fall in demand from the consuming industries.

Trading sentiment turned bearish after palm oil continued to decline throughout the week in Malaysia, the longest losing streak in five months, as seasonal supply concerns are compounded by record soybean harvests.

Palm oil lost 3.6 per cent this week on the Malaysia Derivatives Exchange, the main market in the world for trading the commodity. Marketmen said subdued demand from vanaspati millers and retailers amid adequate supply led to a fall in select edible oils at the wholesale market here.

Besides, weakening trend in global market reports of increased imports also put pressure on the edible oil prices, they added. Meanwhile, the state-run MMTC has invited bids for the import of 6,000 tonnes of RBD palmolein oil, to be delivered by the end of this month.

In the edible oil section, soyabean refined mill delivery (Indore) and soyabean degum (delhi) fell by Rs 100 and Rs 60 to Rs 4,400 and Rs 4,300 per quintal.

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Palmolein (rbd) and crude palm oil (ex-kandla) oils also drifted by Rs 90 and Rs 70 to Rs 4,160 and Rs 3,700 per quintal. Cottonseed mill delivery (Haryana) oil too traded lower by Rs 80 to Rs 4,020 per quintal.

On the other hand, mustard expeller oil (Dadri) witnessed selective buying and went up by Rs 50 to Rs 4,750 per quintal. Mustard pakki and kachi ghani oils inched up by Rs 5 each to Rs 665-820 and Rs 820-920 per tin of 15 litres.

The prices of groundnut mill delivery remained unchanged at Rs 7,100 per quintal, sesame mill delivery at Rs 5,800 per quintal in limited deals. In the non-edible section, neem oil declined by Rs 50 to Rs 3,600-3,700 per quintal on reduced offtake from soap industries.

Linseed oil traded lower by the same margin at Rs 50 to Rs 3,950 on lack of enquiries from paint units. However, oilseeds and oilcakes prices continued to move in a tight range during the week on negligible buying activity and pegged around previous levels.

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First Published: Jun 12 2010 | 1:22 PM IST

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