Weekly Commodities Digest

In a mixed pattern of trading, select edible oils continued their upward journey on the oils and oilseeds market during the past week on sustained buying by vanaspati millers and retailers, driven by festive and marriage season demand, while a few others remained weak for want  of support.

In the non-edible section, castor and oils, remained under pressure due to reduced offtake by industrial units. Traders said persistent buying by vanaspati millers in select edible oils to meet the ongoing festival demand mainly led to the rise in select wholesale edible oil prices.

Besides, firming trend in the Malaysian palm oil also influenced edible oil prices here, they said.

Meanwhile, Malaysian palm oil for January contract gained 1.9 per cent for the week to $982 per tonne on the Malaysia Derivatives Exchange.

In the national capital, soyabean refined mill delivery (Indore) and soyabean degum (Delhi) oils strengthened by Rs 40 and Rs 150 to Rs 5,340 and Rs 5,100 respectively, while palmolein (rbd) gained Rs 40 to Rs 5,240 per quintal.

Cottonseed mill delivery oil (Haryana) oil also edged up by Rs 20 to Rs 4,720 per quintal.

On the other hand, groundnut mill delivery (Gujarat) suffered a sharp setback and lost Rs 280 to Rs 8,500 per quintal. Groundnut solvent refined followed suit and traded lower by Rs 50 to Rs 1,410-1,420 per tin.    

Sesame mill delivery oil too traded in negative zone with a loss of Rs 50 to Rs 5,900 per quintal and coconut oil lost Rs 30 to Rs 1,200-1,260 per tin. 

 In the non-edible section, castor and neem oil also dropped by Rs 100 and Rs 20 to Rs 8,400-8,500 and Rs 3,700-3,800 per quintal respectively on lack of buying support from industrial units.

Grains: In restricted activity, prices of wheat and non-basmati rice declined in the wholesale grains market during the past week on sluggish demand against adequate stocks position. However, rice basmati showed improvement on pick up in retailers demand in view of festive season. 

Traders said the fall in wheat dara and non-basmati rice prices was mostly attributed to adequate stocks position following increased supplies in the market against subdued demand. 

Wheat dara, mostly used by flour mills, met with resistance and higher levels and fell by Rs 20 to Rs 1,265-1,270 per quintal. Atta chakki delivery followed suit and tradedlower by the same margin to Rs 1,255-1,260 per 90 kg, while atta flour mills shed Rs 10 to Rs 665-685 per 50 kg.

Maida also lacked necessary buying support and traded marginally lower by Rs 5 to Rs 760-790 per 50 kg. 

In the rice section, rice permal raw, wand, sela and IR-8 were down by Rs 25 each to Rs 1,900-1,950, Rs 2,025-2,175, Rs 2,190-2,245 and Rs 1,710-1,735 per quintal respectively. 

However, rice basmati common and Pusa-1121 variety found selective buying and gained Rs 100 and Rs 50 to Rs 5,600-5,700 and Rs 4,650-5,250 per quintal. Other grains like, jowar yellow and white fell by Rs 50 each to Rs 9,50-1,050 and Rs 2,000-2,050 per quintal. 

Maize lost Rs 10 to Rs 1,060-1,070 per quintal. 

Bajra which remained steady during the major part of week, attracted some buying from industrial units and finished higher by Rs 15 to Rs 815-825 per quintal.

Pulses: The wholesale pulses market ended on a weak note during the week under review as most of commodities prices continued to slide on sustained selling by stockists on subdued demand by retailers.

Adequate stocks position following increased arrivals from producing belts and higher imports of pulses by the government, also weighed on the prices. Traders said the country's pulses imports might not decline despite an expected increase in production this year because of rising domestic demand.  

To step up domestic supply of pulses, the government is also encouraging the import of pulses by reimbursing public sector undertaking firms for losses up to 15 per cent of the landed cost and the service charge of 1.2 per cent.

They said sustained selling by stockists, following slackened demand from retailers and supply pressure, led to a decline in the prices.  

Urad and its dal chilka local fell by Rs 300 each to Rs 3,700-4,250 and Rs 4,500-4,900, while best quality and dhoya lost Rs 400 and Rs 300 to Rs 5,000-5,300 and Rs 5,200-5,300 per quintal respectively.

Moong and itd dal chilka declined by Rs 250 and Rs 200 to Rs 3,800-4,200 and Rs 4,650-5,050 and dhoya local and best quality lost Rs 100 and Rs 200 to Rs 5,300-5,500 and Rs 5,800-6,000 per quintal. 

Masoor small, bold, dal masoor local were down by Rs 50 each to Rs 2,950-3,150, Rs 3,150-3,400, Rs 3,750-3,850, while best quality shed Rs 100 to Rs 4,000-4,300 per quintal. 

In line with a general weakening trend, malka local and best quality were enquired lower by Rs 100 each to Rs 3,800-3,850 and Rs 3,950-4,050 per quintal. 

Grams and dal traded lower by Rs 70 each to Rs 2,350-2,375 and Rs 2,625-2,650. Gram dal best quality lost Rs 50 to Rs 2,700-2,800 per quintal. Kabli gram small, peas white and green shed Rs 50 each to Rs 4,200-5,400, Rs 1,900-2,000 and Rs 2,050-2,250 per quintal. 

SUGAR: Prices of the sweetener showed a weak tendency during the past week under review following ample supply from mills amid reduced offtake by bulk consumers and ended with a loss of around Rs.40 per quintal. 

Marketmen said all round selling by mills to clear their holdings due to month ending caused an ample stocks position into the market.    

The demand was good due to upcoming Depawali festivals but heavy arrivals from mills mismatched the demand on reduced offtake by bulk consumers such as ice-cream and softdrink producers. Reports of good crops-production this year also helped in keeping the sugar prices under pressure.

On Friday, the government released 14 lakh tonnes free-sale sugar quota for November-month further dampened the market sentiment.  

Sugar ready medium and second grade prices dropped by Rs 25 to settle at Rs 2,875-2,975 and Rs 2,865-2,965 from Rs 2,900-3,000 and Rs 2,890-2,990 per quintal.

Mill delivery medium and second grade price sliped from Rs 2,680-2,780 and Rs 2,670-2,770 to finish at Rs 2,650-2,750 and Rs 2,640-2,740 per quintal, showing a loss of Rs 30 per quintal.   

Among millgate excluding duty section, sugar thanabhavan traded lower at Rs 2,640 from Rs 2,675 per quintal, Budhana also fell from Rs 2,675 to Rs 2,635 per quintal. 

JAGGERY: The wholesale jaggery market witnessed a firm trend during the week under review following paucity of stocks amid pick up in demand from retailers and stockist, showing a rise of nearly Rs 200 per quintal.   

Marketmen said brisk buying by stockist and retailers, against low availability of ready stocks, caused the rise in gur prices. On the other hand, gur pedi and dhayya prices turned weak in Muradnagar on arrivals of new stocks which pulled down the prices by around Rs 100 per quintal. 

In Delhi, gur chakku climbed up from Rs 2,800-2,850 to conclude at Rs 3,000-3,050 per quintal, depcting a rise of Rs 200 per quintal. 

Gur pedi and shakkar also gained by Rs 100 each to finish at Rs 2,900-3,000 and Rs 3,000-3,100 against last week's close of Rs 2,800-2,900 and Rs 2,900-3,000 per quintal respectively.

Meanwhile, gur dhayya prices maintained last week closing levels of Rs 2,950-3,000 per quintal on adequate supply. At Muzzafarnagar, brisk buying by alcohol and cattlefeed makers brought the rise of Rs 100 at Rs 2,050-2,100 per quintal in gur raskat prices.

Khurpa prices also remained in keen demand on paucity of stocks at Rs 2,500-2,600 compared from last week's close of Rs 2,425-2,500, persisting a profit of Rs 100 per quintal. However, gur chakku prices ruled flat throughout the week on some support at Rs 2,600-2,700 per quintal.

On the other hand, in Muradnagar gur dhayya prices declined by Rs 150 to settle at Rs 2,750-2,800 from Rs 2,900-2,950 per quintal. Gur pedi lost by Rs 100 at Rs 2,750-2,800 from last week's close of Rs 2,850-2,900 per quintal, on arrivals of new gur stocks.  

DRY FRUITS: Wholesale prices of select dry fruits fell during the past week in the national capital due to reduced offtake by retailers and stockists at existing higher levels amid weakening trend in producing regions. 

Adequate stocks, following increased arrivals from overseas markets also put pressure on the prices.

Almond California fell by Rs 100 to finish at Rs 10,200 per 40 kg, while its kernel moved down to Rs 355-360 from previous week's mark of Rs 360-365 per kg on selling pressure.  

Almond kernel gurbandi (superior quality) dropped by Rs 10 to settle at Rs 300-340 per kg. 

Cashew kernel (No 180, 210, 240 and 320) declined in the range of Rs 5-10 to conclude at Rs 610-645, Rs 575-595, Rs 515-535 and Rs 435-470 per kg, respectively. 

Kishmish Indian yellow and green fell by Rs 200 each to close at Rs 4,000-6,000 and Rs 6,000-7,500 per 40 kg bags, respectively.  

Pistachio (Irani, hairati and peshwari) prices declined up to Rs 50 settled at Rs 790-840, Rs 1,000-1,150 and Rs 1,250-1,350 per kg, respectively. Walnut and its kernel also eased by Rs 10 each to finish at Rs 110-170 and Rs 310-540 per kg.

tags - weekly market report, almond, kishmish, sugar, edible oil prices