Don’t miss the latest developments in business and finance.

Weekly Market Report - Edible oils fall on sluggish demand, global cues

Image
Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 1:57 AM IST

Edible oil prices declined in the wholesale oils and oilseeds market during the past week on sluggish demand at existing higher levels and a weakening global trend. However, groundnut oil found some support against tight supply and rose moderately.

Non-edible oils held steady in restricted buying activity from consuming industries against adequate stocks.  

Trading sentiments in edible oils turned bearish as palm oil dropped overseas on concerns that a decline in exports from Malaysia may boost stockpiles of cooking oil in the world's second-biggest producer. 

Meanwhile palm oil futures slumped 5.4 per cent this week at $1,079 a metric tonne, the lowest price since November 24 on the Malaysian Derivatives Exchange.

Traders said sluggish demand at prevailing higher levels in tandem with a weak trend overseas, mainly pulled down the wholesale edible oil prices.

They added expectations of higher production of oilseeds also put pressure on the edible oil prices. In the edible section, mustard expeller oil (Dadri) shed Rs 370 to Rs 5,500 per quintal on poor local demand. 

More From This Section

Mustard pakki and kachi ghani oils traded lower by Rs 10 each to Rs 760-915 and Rs 915-1,015 per tin, respectively.  

Cottonseed mill delivery (Haryana) and sesame mill delivery oils declined by Rs 150 and Rs 20 to Rs 5,500 and Rs 6,230 per quintal, respectively. Taking cues from overseas markets, soyabean refined mill delivery (Indore) and soyabean degum (kandla) fell by Rs 370 and Rs 110 to Rs 5,740 and Rs 5,700, respectively.

Likewise, crude palm oil (ex-kandla) plunged by Rs 210 to Rs 5,050 per quintal. Palmolein (rbd) and palmolein (kandla) oils too traded lower by Rs 210 and Rs 270 to Rs 5,610 and Rs 5,310 per quintal, respectively.

On the other hand, groundnut mill delivery oil (Gujarat) rose by Rs 150 to Rs 7,650 per quintal on tight supply.

Grains: Wheat and its product prices fell for second-consecutive week in the wholesale grains market on adequate stocks position following rising arrivals of new crop in the market against reduced offtake. 

However, rice basmati and few other bold grains strengthened on increased demand. Traders said comfortable stocks following rising arrivals of new crop in the market and hopes of record output this year, kept the pressure on the wheat prices.

In the national capital, wheat dara, mostly used by flour mills, dropped by Rs 90 to Rs 1,200-1,205, while wheat deshi shed Rs 25 to Rs 1,675-1,825 per quintal. Similarly, chakki atta declined by Rs 90 to Rs 1,190-1195 per 90 kg and atta flour mills shed Rs 10 to Rs 640-660 per 50 kg.

Maida and sooji too remained weak and moved down by Rs 40 and Rs 20 to Rs 740-770 and Rs 800-820 per 50 kg, respectively.

However, in the rice section, rice basmati Pusa-1121 variety strengthened by Rs 100 to Rs 4,200-5,200 per quintal on pick up in retailers demand.

Jowar yellow gained Rs 25 to Rs 1,000-1,075, while its white variety held steady at Rs 1,825-1,875 per quintal. Bajra and maize also strengthened by Rs 10 each to Rs 910-920 and Rs 1,310-1,320 per quintal.

Pulses: Select pulses prices, led by moong, declined in the wholesale market during the week under review on emergence of selling by stockists amid adequate stocks position against restricted buying.

Traders said selling by stockists against sluggish demand at prevailing higher levels mainly led to the fall in select wholesale pulses prices.

Adequate stocks position on increased arrivals from producing regions further fueled the downtrend, they added. 

The ban on export of pulses, extended for another year, and the state-run trading firm PEC inviting bids for the import of 10,000 tonnes of pulses for sale in the domestic market were other dampening factors for the market sentiment.

Moong and its dal chilka declined by Rs 100 each to Rs 4,400-5,400 and Rs 5,300-5,700, respectively. Likewise, moong dal dhoya local and best qualities traded lower by the same margin to Rs 5,600-5,800 and Rs 6,200-6,400 per quintal, respectively. 

Masoor small and bold shed Rs 50 each to Rs 3,100-3,300 and Rs 3,250-3,500, respectively. Its dal local and best quality too traded lower by Rs 50 to Rs 3,650-3,750 and Rs 3,950-4,250 per quintal.

Malka local and best quality fell by Rs 100 each to Rs 3,500-3,550 and Rs 3,650-3,750 per quintal, respectively.

In line with a general weakening trend, moth prices moved down by Rs 100 to Rs 2,300-2,600, while arhar and its dal dara variety lost Rs 100 each to Rs 3,450-3,950 and Rs 5,000-5,400 per quintal, respectively. 

Gram and its dal local and best quality shed Rs 100 each to Rs 2,450-2,475, Rs 2,725-2,740 and Rs 2,825-2,925 per quintal, respectively.

Also Read

First Published: Mar 26 2011 | 2:24 PM IST

Next Story