Select edible oils decline on reduced offtake, global cues

Snapping a two-week rising streak, edible oil prices drifted at the wholesale oils and oilseeds market during the past week due to reduced offtake by millers and retailers at existing higher levels.

Weakening trend in palm oil, which slipped from 34-month high at the Malaysian markets, also put some pressure on the edible oil prices here.    

Meanwhile, palm oil prices fell 2.2 this week, the most since the week ended December 17.

Besides, weakening trend in Malaysia, reduced offtake by vanaspati millers and retailers at existing higher levels led to decline in edible oil prices, traders said. 

In the national capital, groundnut mill delivery oil (Gujarat) fell by Rs 200 to Rs 7,400 per quintal and groundnut solvent refined lost Rs 25 to Rs 1,425-1,435 per tin.     

Mustard expeller (Dadri) oil followed suit and drifted by Rs 200 to Rs 5,970 per quintal, while mustard pakki and kachi ghani oils shed Rs 10 each to Rs 770-925 and Rs 925-1,025 per tin.

Sesame and cottonseed mill delivery (Haryana) oils also declined by Rs 50 and Rs 70 to Rs 6,250 and Rs 5,650 per quintal. 

Taking cues from overseas markets, palmolein (rbd) and crude palm oil (ex-kandla) were down by Rs 70 and Rs 20 to Rs 6,150 and Rs 5,550 per quintal.

Soyabean refined mill delivery (Indore) and soyabean degum (Delhi) oils too traded in negative zone with a loss of Rs 20 each to Rs 6,280 and Rs 6,080 per quintal.

A few oils in the non-edible section, also showed a weak trend on reduced offtake by industrial units and other consuming industries.

Linseed oil declined by Rs 50 to Rs 4,550 per quintal on lack of buying support from paint industries. 

Neem oil lost Rs 50 to Rs 4,050-4,150 per quintal on reduced offtake by soap units.

GRAINS: A rising trend continued for the third straight week on the wholesale grains market as wheat and its product prices rose further on increased offtake by flour mills for the marriage and festival season amid fall in arrivals from producing regions.    

Rice basmati, maize and bajra were also in good form on increased demand and made further headway.

Traders said apart from increased offtake by rolling flour mills, tight stocks following restricted arrivals from producing regions due to cold wave also, led to a rise in wheat and other grain prices.    

In the national capital, wheat dara (for mills), mostly consumed by flour mills, remained in demand from flour mills and strengthened by Rs 35 to Rs 1,390-1,395, while wheat deshi gained Rs 30 to Rs 1,730-1,880 per quintal.

Atta chakki delivery followed and shot up by Rs 55 to Rs 1,415-1,420 per 90 kg.

Atta flour mills, maida and sooji were also up by Rs 30 each to Rs 40 to Rs 740-760,Rs 800-830 and Rs 860-880 per 50 kg, tracking firming trend in wheat.

Other grains like maize and bajra moved up by Rs 50 and Rs 10 to Rs 1,120-1,130 and Rs 840-850 per quintal. In the rice section, basmati Pusa-1121 varitieis rose by Rs 100 to Rs 4,300-5,100 per quintal.

Permal raw, wand, sela and IR-8 which held steady in the major part of week, found fresh buying support from retailers and traded higher by Rs 50 each to Rs 1,850-1,900, Rs 2,000-21,50, Rs 2,150-2,205 and Rs 1,720-1,745 per quintal, respectively.