Select edible oils recover on millers, retailers buying

Edible oils staged a strong comeback to close higher on the oils and oilseeds market during the past week on emergence of buying by vanaspati millers and retailers, driven by the upcoming marriage season. 

Firm trends in global markets also influenced the trading sentiment. A few non-edible oils also moved up on increased industrial offtake.

Traders said fresh buying by millers and retailers to meet upcoming marriage season demand and a firm trend at producing belts and overseas market, mainly pushed up wholesale edible oil prices.

Palm oil futures for April-delivery registered a weekly gain of 1.8 per cent to $1,225 a metric tonne, the highest level for the most-active contract since January 7, in Kuala Lumpur.

In the national capital, groundnut mill delivery (Gujarat) and mustard expeller oil rose by Rs 100 each to Rs 7,500 and Rs 6,070 per quintal. Mustard pakki and kachi ghani oils traded higher by Rs 5 each to Rs 775-930 and Rs 930-1,030 per tin.

Sesame and cottonseed mill delivery (Haryana) oils also seen in demand and advanced by Rs 150 and Rs 70 to Rs 6,400 and Rs 5,720 per quintal, while coconut oil gained Rs 25 to Rs 1,440-1,500 per tin.

Taking cues from overseas markets, soyabean refined mill delivery (Indore) and soyabean degum (Kandla) oils shot up by Rs 240 and Rs 70 to Rs 6,520 and Rs 6,150, palmolein (rbd) oil gained Rs 20 to Rs 6,170 per quintal.

In the non-edible section, neem oil rose by Rs 50 to Rs 4,600 per quintal on fresh enquiries from paint industries. Neem oil also moved up by Rs 100 to Rs 4,150-4,250 per quintal on increased offtake by soap units.

GRAINS: Rice basmati continued to rise for the second straight week on the wholesale grains market on increased buying by stockists and retailers to meet the ongoing marriage season demand against restricted arrivals.

Maize and barley also picked up on emergence of industrial units buying, amid restricted arrivals and closed with moderate gains. However, wheat and its products declined on increased arrivals from producing region against reduced offtake by flour mills.

Market analysts said increased buying by stockists and retailers for the marriage season amid restricted arrivals mainly strengthened rice basmati prices.

Stockists off-loading of wheat influenced by reports of better crop this season created adequate stocks position in the market and helped in the prices to decline, they said.

In the national capital, basmati common prices rose by Rs 100 to Rs 5,600-5,700, while Pusa-1121 variety traded higher to Rs 4,450-5,550 against last close of Rs 4,300-5,100 per quintal.

Permal raw, wand and IR-8 were also enquired higher by Rs 25 each to Rs 1,875-1,925, Rs 2,025-2,175 and Rs 1,745-1,770, while sela variety held steady at Rs 2,150-2,205 per quintal.

Maize and barley too seen in demand among cattle-feed makers and other industrial units and advanced by Rs 30 and Rs 10 to Rs 1,150-1,160 and Rs 1,260-1,280 per quintal.

On the other hand, wheat dara (for mills) fell by Rs 45 to Rs 1,345-1,350 per quintal. Atta chakki delivery followed suit and dropped by Rs 70 to Rs 1,345-1,350 per 90 kg.

Sooji eased to Rs 840-860 against last closing level of Rs 860-880 per 50 kg.

PULSES: Firm conditions developed on the wholesale pulses market during the past week as arhar, moong and other pulses rose sharply on buying by stockists and retailers for the ongoing marriage season against restricted arrivals from producing region.

Market analysts said stockists and retailers were net purchasers to meet the marriage demand against restricted arrivals from producing regions mainly led to a rise in wholesale pulses prices.

A firm trend in producing regions also bolstered the uptrend in pulses, they said.

In the national capital, arhar and its dal dara variety gained the most by surging to Rs 600 and Rs 700 to settled at Rs 3,850-3,950 and Rs 5,000-5,400 per quintal.

Moong and its dal chilka local followed suit and jumped up by Rs 250 and Rs 300 to Rs 4,250-4,650 and Rs 5,150-5,550, while moong dal dhoya local and best quality traded higher by Rs 300 each to Rs 5,400-5,600 and Rs 5,900-6,100 per quintal.

Masoor small and bold too traded in positive zone with a gain of Rs 150 each to Rs 3,550-3,750 and Rs 3,700-3,950 and dal masoor local and best quality moved up by Rs 250 each to Rs 4,300-4,400 and Rs 4,550-4,850 per quintal.  

Malka local and best quality went up by Rs 100 each to Rs 4,000-4,050 and Rs 4,150-4,250 per quintal. In line with a general firming trend, kabli gram small variety rose by Rs 150 to Rs 4,150-5,550 per quintal.

Rajma chitra (Pune) and (China) were up by Rs 50 each to Rs 3,350-3,950 and 3,450-3,550 and its red variety traded higher by the same margin to Rs 3,450-3,550 per quintal.

SUGAR: The wholesale sugar prices witnessed a fall of Rs 100 per quintal in the national capital during the week under review following ample supply from mills amid sluggish demand from retailers and bulk consumers. 

Market experts said apart from weak demand from bulk consumers like soft drink and ice-cream makers due to fall in temperature against ample supply mainly pulled down sugar prices.

They said reports of better sugarcane crop estimates for the current season further influenced market sentiment and advised millers to reduce their holdings.

The government has estimated total sugar production at 24.5 million tonnes in the current crop year against 19 million tonnes in the previous crop year.

Sugar ready medium and second grade prices tumbled from Rs 3,100-3,200 and Rs 3,075-3,175 to Rs 3,000-3,125 and Rs 2,980-3,100 per quintal, respectively.

Mill delivery medium and second grade prices also slipped to Rs 2,775-2,925 and Rs 2,760-2,900 against last week's close of Rs 2,850-3,000 and Rs 2,825-2,975, depicting net loss up to Rs 75 per quintal.

In millgate section, sugar excluding duty paid from mawana quoted lower by Rs 85 to Rs 2,840 per quintal and Budhana by Rs 100 at Rs 2,795 per quintal.

Sugar kinnoni dropped by Rs 80 to Rs 2,900 per quintal and Dorala by Rs 65 to Rs 2,845 per quintal.

JAGGERY: The wholesale gur prices plunged by Rs 300 per quintal in the national capital during the past week under review following ending festival season amid heavy supply from manufacturing areas.

Marketmen said reports of better production of sugar-cane crops this year advised stockists to off-load their holdings. The demand for gur declined following ending of festivals like "Makar Sankranti" and "Lohri" also influenced the trading sentiment, they added.

In Delhi gur shakkar prices tumbled from Rs 2,800-2,900 to Rs 2,550-2,600, showing a sharp loss of Rs 300 per quintal. Gur dhayya prices dropped by Rs 250 to Rs 2,350-2,400 against last week's level of Rs 2,600-2,650 per quintal.

Gur pedi slipped from Rs 2,500-2,550 to Rs 2,300-2,350, mirroring a net loss of Rs 200 per quintal, while chakku prices fell by Rs 50 to end at Rs 2,300-2,350 per quintal.

At Muradnagar, gur pedi and dhayya quoted lower from Rs 2,250-2,300 and Rs 2,300-2,350 to Rs 2,050-2,100 and Rs 2,100-2,125, losing upto Rs 200 per quintal.     

In Muzaffarnagar, gur chakku and khurpa prices slided from Rs 2,150-2,300 and Rs 2,150-2,200 to Rs 2,100-2,250 and Rs 2,000-2,050, showing a net loss upto Rs 150 per quintal. 

Poor offtake by alcohol and cattle-feed making industries pulled down the prices of gur raskat by Rs 50 to Rs 1,750-1,850 from Rs 1,800-1,900 per quintal.