Amid a weakening global trend and sluggish demand at existing higher levels, edible oil prices extended losses in the oils and oilseeds market during the week under review. Linseed oil in the non-edible section, also showed some weakness on lack of demand from the paint industries.
Sentiment in select edible oils remained bearish after palm oil fell the most in more than five weeks in global markets as commodities slumped on concern that the US economic recovery may stall and stockpiles climbed.
Palm oil stockpiles in Malaysia, the second-largest grower, climbed 47% to 2.07 million tonne in July, the highest level since December 2009. Meanwhile, palm oil futures fell 1.5% this week on the Malaysia Derivatives Exchange.
In the national capital, sesame and cottonseed mill delivery (Haryana) oils declined by Rs 30 each to Rs 6,200 and Rs 5,530 per quintal, respectively. Mustard expeller oil lost Rs 20 to Rs 5,980 per quintal. Taking cues from overseas markets, palmolein (rbd) oil shed Rs 30 and palmolein (Kandla) oil fell by Rs 50 to Rs 5,850 and Rs 5,550, respectively, while crude palm oil (ex-kandla) shed Rs 10 to Rs 5,200 per quintal.
Soyabean refined mill delivery (Indore) and soyabean degum (Kandla) oils also declined by Rs 20 each to Rs 6,430 and Rs 5,930 per quintal, respectively. In the non-edible section, linseed oil declined by Rs 50 to Rs 4,500 per quintal.
Grains: Weak conditions persistent in the wholesale grains market during the past week as wheat and rice prices declined on reduced offtake against increased arrivals. However, bajra and maize strengthened on the back of selective buying.
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Traders said adequate stocks position following increased arrivals from producing region mainly pulled down wheat prices. They said sluggish demand from retailers against sufficient stocks led to the fall in rice basmati prices.
Wheat (Deshi) lost Rs 30 and wheat dara (for mills) fell by Rs 50 to Rs 1,550-1,700 and Rs 1,140-1,145 per quintal, respectively. Atta chakki delivery followed suit and lost Rs 55 to Rs 1,145-1,150 per 90 kg.
Atta flour mills declined by Rs 5 and maida by Rs 20 to Rs 645-665 and Rs 740-750 per 50 kg, respectively.
In the rice section, rice basmati Pusa-1121 variety, which remained steady during the major part of the week, traded lower at Rs 4,100-4,850 from previous level of Rs 4,200-5,000 per quintal.
Non-basmati permral raw and wand also fell by Rs 25 each to Rs 1,850-1,900 and Rs 2,000-2,100 per quintal, respectively. On the other hand, bajra rose by Rs 40 to Rs 1,000-1,010 and maize gained Rs 10 to Rs 1,200-1,210 per quintal.
Pulses: In a mixed pattern of trade, masoor and peas prices rose in the wholesale pulses market during the past week following pick-up in demand from retailers, while rajmah chitra and gram declined on adequate stocks position.
Traders said pick-up in demand from retailers due to ongoing festival season mainly pushed up masoor small and peas prices.
In the national capital, masoor small and bold rose by Rs 50 each to Rs 2,650-2,950 and Rs 2,800-3,050 per quintal, respectively. Its dal local and quality also traded higher by the same margin to Rs 3,400-3,500 and Rs 3,600-3,900 per quintal, respectively.
Peas white and green were also seen in local demand and gained Rs 25 each to Rs 2,350-2,450 and Rs 2,475-2,675 per quintal, respectively. On the other hand, gram fell by Rs 100 to Rs 2,925-3,025. Its dal local lost Rs 100 and best quality moved down by Rs 125 to Rs 3,350-3,450 and Rs 3,550-3,650 per quintal, respectively.
Peas white and green edged up by Rs 25 each to Rs 2,350-2,450 and Rs 2,475-2,675 per quintal, respectively. However, prices of other pulses moved in a tight range on alternate small bouts of trading and settled at last levels.
Sugar: Weak conditions persisted in the wholesale sugar market in the national capital during the past week on mounting stocks after the government release higher free sale sugar quota for August, and registered a net loss of upto Rs 50 per quintal.
Market analysts said fall in demand from stockists and bulk consumers such as soft drink and ice-cream making industries due to monsoon rains amid allocation of more than expected free sale sugar quota for August month, put weight on prices.
The government released 19.25 lakh tonne of free sale sugar quota for August, which is higher than the fresh demand for the ongoing festive season, they said. Sugar ready medium and second grade prices fell from Rs 2,975-3,160 and Rs 2,960-3,100 to Rs 2,950-3,075 and Rs 2,925-3,040 per quintal, respectively.
Mill delivery medium and second grade price also eased from Rs 2,825-3,000 and Rs 2,810-2,975 to Rs 2,800-2,950 and Rs 2,790-2,930 a quintal, respectively. In millgate, excluding duty section, sugar Kinnoni, Asmoli and Dorala slipped by Rs 50 each to Rs 2950, Rs 2,940 and Rs 2,860 per quintal, respectively.
Sugar Mawana, Thanabhavan and Titabi went down by Rs 40 each to Rs 2,880, Rs 2,780 and Rs 2,870 per quintal, respectively.
Jaggery: Steady to firm conditions developed in the wholesale jaggery market during the week under review as select gur varieties rose on reduced arrivals against better offtake and settled with gains, while a few others traded at last levels in thin trade.
Market analysts said fall in production due to bad weather conditions created tight stocks position in the market and pushed up gur prices. Higher neighbouring states advices also boosted the trading sentiments to some extent, they added.
In Delhi, gur dhayya prices shot up by Rs 100 to settle at Rs 3,300-3,400 as compared to last week's close of Rs 3,200-3,300 per quintal. However, gur chakku, pedi and shakkar prices maintained last week's closing levels on some support at Rs 2,850-2,950, Rs 3,050-3,150 and Rs 3,200-3,300 per quintal, respectively.
In Muzaffarnagar, gur raskat hardened from Rs 2,350-2,450 to Rs 2,400-2,500, resulting in a net profit of Rs 50 per quintal on the back of heavy buying by beer making industries. On the other hand, gur chakku opened steady at Rs 2,500-2,650 on some support and shed Rs 100 to close at Rs 2,475-2,550 per quintal due to fresh supply.
At Muradnagar, gur pedi prices ruled flat throughout the week in thin trade at Rs 2,750-2,800 per quintal, while gur dhayya prices remained unquoted on non-availability of stocks.