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Oil prices firm on approaching festival season, global cues

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Press Trust of India New Delhi
Last Updated : Jan 21 2013 | 3:38 AM IST

An upward trend in edible oil prices in the wholesale oils and oilseeds markets continued for the second straight week, on sustained buying by vanaspati millers ahead of the festive season and a firming trend  in the overseas markets.

Prices for some oils in the non-edible section, also strengthened slightly on increased industrial demand, particularly from paint manufacturing units. Trading sentiment for the palm oil is bullish and on a winning streak since February.

Its price reached a six-week high in Malaysia, on speculation that demand for the vegetable oil will increase as India and other Asian nations approach the festival season. Reports of cotton crop damage in Haryana and Punjab due to heavy rains, and delay in groundnut sowing at Gujarat were the other factors behind the price rise. 

Meanwhile, palm oil for September-delivery rose for a seventh day in Malaysia, adding 1.3 per cent to 770 dollar a metric ton on the Malaysia Derivatives Exchange.

Marketmen said steady buying activity by vanaspati millers ahead of festival season and firming trend in global markets are responsible for the rise in select edible oil prices. Besides, pick up in retailers demand as consumption rises in rainy season has also supported the upside in edible oil prices, they said.

Meanwhile, country's vegetable oil imports fell by 6 per cent in June to 7.32 lakh tonnes against 7.8 lakh tonnes in the year-ago period, mainly on account of large quantity of imported stocks lying at ports and in the pipeline. 

In the edible section, groundnut mill delivery (Gujarat) gained the most, surging by Rs 400 to Rs 8,000 per quintal, on strong demand coupled with higher advices from producing region. Groundnut solvent refined followed suit and rose by Rs 80 to Rs 1,350-1,360 per tin of 15 litres.

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Mustard expeller oil (Dadri) also attracted fresh buying from local parties and jumped Rs 130 to Rs 5,050 per quintal. Mustard pakki and kachi ghani oils traded higher by Rs 5 each to Rs 690-845 and Rs 845-945 per tin.

Cottonseed mill delivery (Haryana) oil spurted by Rs 200 to Rs 4,400 per quintal on vanaspati millers buying.

Soyabean bean refined mill delivery (Indore) and soyabean degum (Delhi) rose by Rs 110 each to Rs 4,630 and Rs 4,430, while crude palm oil (ex-kandla) and palmolein (rbd) shot up by Rs 100 and Rs 190 to Rs 3,740 and Rs 4,400 per quintal on firming global trend.

In the non-edible section, linseed oil gained Rs 50 to Rs 4,000 per quintal on fresh enquiries from paint industries. Castor oil also traded higher by Rs 50 to Rs 7,350-7,450 per quintal on increased industrial offtake.

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First Published: Jul 17 2010 | 1:09 PM IST

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