Select edible oils slide on muted demand, adequate stocks

Ample stocks position on increased arrivals mainly kept pressure on select edible oil prices

Select edible oil prices drifted lower at the wholesale oil and oilseeds market owing to slackened demand from retailers against ample stocks position on increased supplies.

However, non-edible oils moved in a narrow range in scattered deals and settled around the previous levels.

Traders said besides easing demand from retailers, ample stocks position on increased arrivals from producing regions mainly kept pressure on select edible oil prices.

Meanwhile, palm oil imports fell for the second consecutive month by 8.5% to 7,23,158 tonnes in December 2016, on expected bumper oilseeds crop and better domestic edible oils supply, industry body Solvent Extractors Association (SEA) said.

India, the world's leading vegetable oil buyer, had imported 7,90,368 tonnes palm oil in December 2015.

Country's total vegetable oil imports fell by 15% to 12.09 lakh tonnes in December 2016 from 14.20 lakh tonnes in the year-ago period.

In the national capital, groundnut mill delivery (Gujarat) oil fell by Rs 200 to Rs 10,000 per quintal, while groundnut solvent refined held steady at Rs 1,800-1,900 per tin.

Mustard expeller (Dadri) and cottonseed mill delivery (Haryana) oil also declined by Rs 150 and Rs 50 to Rs 8,450 and Rs 6,800 per quintal, respectively.

On the other hand, palmolein (rbd) and palmolein (Kandla) oils edged up by Rs 50 each to Rs 6,250 and Rs 6,300 per quintal, respectively.

In the non-edible section, linseed and castor oils moved in a narrow range in the absence of worthwhile activity from consuming industries and finished at previous week's levels of Rs 9,850 and Rs 9,850-9,950 per quintal.

Grains: Wheat prices maintained its rising streak for another week at the wholesale grains market on the back of increased offtake by flour mills against tight stocks position on fall in supplies from producing regions.

Rice basmati also strengthened on pick-up in demand from retailers.

Traders said besides increased offtake by flour mills, tight stocks position in the market on fall in supplies from producing regions mainly kept wheat prices higher.

Pick up in demand from retailers helped rice basmati prices to close higher, they said.

In the national capital, wheat (desi) and wheat dara (for mills) rose to Rs 2,820-3,120 and Rs 2,190-2,200 from previous week's levels of Rs 2,650-2,950 and Rs 1,970-1,980 per quintal respectively. Atta chakki delivery followed suit and traded higher at Rs 2,210-2,240 from previous close of Rs 2,000-2,030 per 90 kg.

Atta flour mills, maida and sooji also settled firm at Rs 1,170-1,180, Rs 1,250-1,260 and Rs 1,290-1,300 as compared to previous levels of Rs 1,150-1,160, Rs 1,140-1,160 and Rs 1,225-1,250 per 50 kg, respectively in line with wheat trend.

In the rice section, rice basmati Pusa-1121 variety also edged higher to Rs 5,000-6,200 from previous close of Rs 4,950-6,100 per quintal.

Other bold grains like bajra and maize eased to Rs 1,425-1,465 and Rs 1,580-1,590 against last close of Rs 1,465-1,480 and Rs 1,590-1,610 per quintal, respectively on tepid demand from consuming industries.

Pulses: Weak conditions persisted at the wholesale pulses market during the week as most pulses led by gram and moong slid further and prices recorded a fall by up to Rs 600 per quintal on ample stocks position due to improved supplies against fall in demand from retailers.

Marketmen said sufficient stocks position in the market following increased supplies from producing regions against fall in demand from retailers, mainly kept pressure on gram, moong and other pulses prices.

In the national capital, gram remained weak and lost Rs 600 at Rs 6,800-7,200 per quintal. Its dal local and best quality plunged Rs 500 each to Rs 7,700-8,000 and Rs 8,100-8,200 per quintal, respectively. Kabuli gram small variety shed Rs 100 at Rs 8,900-9,400 per quintal.

Besan Shaktibhog and Rajdhani quoted lower at Rs 3,400 each instead of Rs 3,800 each per 35 kg bag.

Masoor small and bold eased to Rs 4,750-4,900 and Rs 4,800-5,000 against last close of Rs 4,900-5,000 and Rs 4,950-5,100 per quintal. Its dal local and best quality enquired lower by Rs 200 each to Rs 5,100-5,600 and Rs 5,200-5,700 per quintal.

Malka local and best quality drifted lower by Rs 300 each to Rs 5,600-5,800 and Rs 5,700-5,900 per quintal.

Arhar and its dal dara variety declined by Rs 200 each to Rs 4,650 and Rs 6,500-8,300 per quintal, respectively.

Urad and its dal chilka too ended lower by Rs 100 each to Rs 6,000-7,000 and Rs 6,300-6,400 per quintal. Its dal best quality and dhoya traded lower by a similar margin to Rs 6,400-6,900 and Rs 6,800-7,100 per quintal.