Edible oils maintain an uptrend on rising demand, global cues

Edible oil prices maintained their upward march on the oils and oilseed market during the past week on continued buying by vanaspati millers and retailers to meet the festive and marriage season demand, amid rising trend in Malaysian palm oil which climbed to 34-month high.

A few oils in the non-edible section also showed firmness on increased offtake by consuming industries.

Sentiments in edible oils remained firm on the back of rising demand from millers as well as retailers to meet the demand for marriages and festivals, traders said. 

Besides, rising trend in Malaysia, the hub of global palm oil trading, where palm oil futures zoomed to a 34-month high on concern that stockpiles reserves may have dropped to a five-month low in December, also supported the upside in edible oil prices here, they said.

Meanwhile, Malaysian palm futures climbed to almost $1,250 a tonne.

In the national capital, groundnut mill delivery oil (Gujarat) gained the most by surging Rs 250 on day-to-day buying to Rs 7,600 per quintal, while groundnut solvent refined moved up by Rs 25 to Rs 1,450-14,60 per tin. 

Mustard expeller oil (Dadri) strengthened by Rs 20 to Rs 6,170, while cottonseed mill delivery (Haryana) and sesame mill delivery oils added Rs 20 and Rs 50 to Rs 5,720 and Rs 6,300 per quintal.

Taking cues from overseas markets, soyabean refined mill delivery (Indore) and soyabean degum (Kandla) oils rose by Rs 50 each to Rs 6,300 and Rs 6,100 and crude palm oil (kandla) and palmolein (rbd) were up by Rs 20 each Rs 5,570 and Rs 6,220 per quintal.

In the non-edible section, linseed oil shot up by Rs 100 to Rs 4,600 per quintal on fresh enquiries from paint industries.  

Castor oil added another Rs 50 to Rs 8,650-8,750 per quintal on increased industrial offtake. Neem oil also went up by Rs 50 to Rs 4,100-4,200 per quintal on pick up in soap industries demand.

GRAINS: There has been no change in the trading pattern on the wholesale grains market during the week with wheat and its product prices rising further on increased buying by flour mills largely supported by marriage and festival season.  

Maize, barley and bajra also strengthened on pick up in industrial demand. However, rice basmati met with resistance and declined.     

Traders said apart from increased offtake by rolling flour mills, tight stocks following restricted arrivals from producing regions due to adverse weather conditions, also gave push to rising wheat prices.    

In the national capital, wheat dara (for mills), mostly consumed by flour mills, remained in demand and advanced further by Rs 35 to Rs 1,355-1,360, while wheat deshi rose by Rs 50 to Rs 1,700-1,850 per quintal.

Atta chakki delivery followed and added Rs 35 to Rs 1,360-1,365 per 90 kg.     

Atta flour mills and sooji also moved up by Rs 20 and Rs 40 to Rs 710-730 and Rs 830-840 per 50 kg in line with a firming trend in wheat.

Other grains like maize and barley (UP) rose by Rs 70 and Rs 20 to Rs 1,070-1,080 and Rs 1,250-1,270, while bajra inched up by Rs 10 to Rs 830-840 per quintal.

However, in the rice section, basmati common and Pusa-1121 varitieis lacked necessary buying support and declined by Rs 100 and Rs 50 to Rs 5,500-5,600 and Rs 4,200-5,000 per quintal.

SUGAR: The wholesale sweatner prices showed a downward trend in the national capital during the past week following fall in demand from stockist and local parties amid increased supply, registering a net loss up to Rs 50 per quintal.     

Market analysts said prices remained steady at the outset on fresh buying by retailers and bulk consumers but increased supply from mills pulled down the sugar prices to end lower.     

Sugar ready medium and second grade price ended lower at Rs 3,125-3,225 and Rs 3,100-3,200 as compared to last week's close of Rs 3,150-3,275 and Rs 3,125-3,250, showing a fall of Rs 50 per quintal.

Mill delivery price medium and second grade concluded lower by Rs 40 at Rs 2,875-3,040 and Rs 2,860-3,025, respectively.     

Among millgate section, sugar Budhana and Dorala lost Rs 30 each to Rs 2,920 and Rs 2,960 per quintal, respectively. Sugar Titabi and Mawana also traded lower by Rs 20 each at Rs 2,960 and Rs 2,965 per quintal.

JAGGERY: Gur prices declined marginally by Rs 50 per quintal during past week on the back of increased supply from manufacturing areas amid reduced offtake by stockist and local parties.     

Market analysts said increased supply from manufacturing belts and stockists enlarging their position, brought down the prices. Muzzafarnagar and Muradnagar gur markets also depicted a weak trend as prices lost upto Rs 100 per quintal.

In Dehi, gur chakku lost by Rs 50 at Rs 2,400-2,450 from Rs 2,450-2,500 per quintal on fresh supply. Gur pedi prices also slipped by Rs 50 to Rs 2,550-2,600 per quintal.   

However, gur dhayya and shakkar prices maintained last week's closing levels of Rs 2,600-2,650 and Rs 2,700-2,800 per quintal on some support.     

At Muzzafarnagar gur raskat, gur prices fell from Rs 1,900-1,975 to Rs 1,850-1,925 per quintal on less offtake by alcohal makers.     

Gur khurpa price eased from Rs 2,150-2,225 to Rs 2,150- 2,200 per quintal, shwoing a loss of Rs 25, while gur chakku traded at last level of Rs 2,300-2,400 per quintal on little support.     

In Muradnagar, gur pedi and dhayya tumbled by Rs 100 each to Rs 2,250-2,300 and Rs 2,300-2,350 as compared from the last week's close of Rs 2,350-2,400 and Rs 2,400-2,500 per quintal, respectively.

PULSES: Firming conditions prevailed in the wholesale pulses market for the second straight week as most prices led by urad and masoor strengthened further on rising demand for the festive and marriage season.

Restricted arrivals due to adverse weather conditions and higher trend in producing regions further fueled the uptrend.  

Market analysts said rising demand from retailers amid restricted arrivals from producing regions mainly helped pulses prices to strengthen. They said higher trend in producing regions also influenced the trading sentiment.     

In the national capital, urad and its dal chilka local strengthened by Rs 300 each to Rs 4,100-4,650 and Rs 4,900-5,300, while dal best quality and dhoya traded higher by the same margin to Rs 5,400-5,700 and Rs 5,600-5,700 per quintal, respectively.

Masoor small and bold also moved up by Rs 150 each to Rs 3,300-3,500 and Rs 3,450-3,700, while dal local and best quality were enquired higher by the a same margin to Rs 4,050-4,150 and Rs 4300-4600 per quintal, respectively.

Moong and moong dal local added Rs 50 and Rs 100 to Rs 4,000-4,400 and Rs 4,850-5,250 each and moong dal dhoya local and best were up by the similar margin to Rs 5,100-5,300 and Rs 5,600-5,800 per quintal, respectively.

In line with a general firming trend, malka local and best quality traded higher by Rs 100 each to Rs 3,800-3,850 and Rs 3,950-4,050 per quintal, respectively.

Gram and its dal local variety gained Rs 25 each to Rs 2450-2475 and Rs 2750-2765 and peas white and green up by Rs 50 each to Rs 1975-2075 and Rs 2075-2275 per quintal.