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Edible oils extend weakness on low demand; adequate stocks

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Press Trust of India New Delhi
Last Updated : Jan 09 2016 | 12:42 PM IST
There has been no change in the pattern of trading at the wholesale oils and oilseeds market for yet another week with edible oil prices sliding further owing to muted demand from retailers and vanaspati millers against sufficient stocks on higher supplies from producing belts.
However, mustard oil ended higher on scattered demand from local parties.
In the non-edible section, linseed, edged up on pick up in demand from paint industries.
Traders said besides easing demand from retailers and vanaspati millers at prevailing levels, ample stocks position on higher supplies from producing regions mainly kept pressure on edible oil prices.
Moreover, reports of a weak trend in Malaysian palm oil overseas dampened sentiments here, they said.
In the national capital, sesame mill delivery oil dropped by Rs 200 to Rs 7,200 per quintal.

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Groundnut mill delivery (Gujarat) and cottonseed mill delivery (Haryana) oils too were under pressure and shed another Rs 50 each to Rs 9,000 and Rs 5,750 per quintal, respectively.
Soyabean refined mill delivery (Indore) and soyabean degum (Kandla) oils eased by Rs 100 each to Rs 6,500 and Rs 6,200 per quintal, respectively.
Palmolein (RBD) and palmolein (Kandla) oils in tune with overall trends weakened by Rs 50 each to Rs 5,250 and Rs 5,200, while crude palm oil (ex-kandla) traded lower by a similar margin to Rs 4,100 per quintal, respectively.
On the other hand, mustard expeller (Dadri) oil rose by Rs 100 to Rs 8,850 per quintal on selective buying by local parties.
Grains: Rice basmati prices recovered at the wholesale
grains market during the week backed up by demand from retailers amid restricted supplies from producing belts.
However, a few other bold grains eased on reduced offtake by consuming industries against adequate stocks.
Traders said mild demand from retailers against restricted arrivals from growing regions mainly led to recovery in rice basmati prices.
They said, however, fall in demand from consuming industries against sufficient stocks on increased supplies from producing regions kept pressure on other few bold grains prices.
In the national capital, rice basmati common and Pusa-1121 variety edged up to Rs 5,400-5,500 and Rs 4,350-5,000 from previous levels of Rs 5,300-5,400 and Rs 4,000-4,700 per quintal, respectively.
However, non-basmati rice permal raw, wand and sela held steady at Rs 1,925-1,975, Rs 2,150-2,200 and Rs 2,500-2,600 per quintal during the period.
Pulses: The wholesale market depicted a mixed trend during
the week as select pulses prices led by arhar recovered supported by pick up in demand from retailers while a few others remained lower on adequate stocks on increased supplies following a series of steps taken by the government including offloading of seized stocks in the markets.
Traders said pick up in demand from retailers mainly attributed recovery in arhar and a few other pulses prices.
They said, however, sufficient stocks availability after various steps including curbs on hoarding of pulses stocks by the government, kept pressure on other pulses.
Meanwhile, the government has offloaded over 1.12 lakh tonnes of pulses, seized from hoarders, in the retail market to improve availability and tame prices.
With pulses prices still ruling high on likely production concerns, the government has issued a tender to import 5,000 tonnes of pigeon peas (tur) to boost domestic supply from next month.
State-run MMTC has invited bids for supply of 5,000 tonnes of pigeon peas and the quantity of shipment can be increased depending on the price bids.
Fearing pulses prices might flare up again in 2016 due to little improvement in domestic output as compared to 2015, the government has directed MMTC to import more pulses to improve domestic availability and check prices.
In the national capital, arhar recovered sharply to Rs 9,550 from previous week's level of Rs 8,700 per quintal, while its dal dara variety continued to be traded at previous level of Rs 12,500-14,500 per quintal.
Urad and its dal chilka local strengthened to Rs 9,050-10,050 and Rs 10,100-10,300 against last close of Rs 8,950-9,950 and Rs 10,000-10,200 per quintal, respectively.
Its dal best quality and dhoya also surged to Rs 10,200-10,800 and Rs 10,600-11,000 from previous levels of Rs 10,100-10,700 and Rs 10,500-10,900 per quintal, respectively.
Moong and its dal chilka local went up to Rs 7,200-7,800 and Rs 7,800-8,200 against last close of Rs 6,950-7,550 and Rs 7,550-7,950 per quintal, respectively. Its dal dhoya local and best quality followed suit and enquired higher at Rs 8,150-8,650 and Rs 8,650-8,850 from previous close of Rs 7,900-8,400 and Rs 8,400-8,600 per quintal.
Moth and rajmah chitra edged up by Rs 100 and Rs 50 to Rs 5,900-6,300 and Rs 4,900-6,300 per quintal, respectively.
On the other hand, masoor small and bold slipped to Rs 5,250-6,250 and Rs 5,300-6,300 against last week's close of Rs 5,500-6,500 and Rs 5,550-6,550 per quintal, respectively.
Its dal local and best quality eased to Rs 6,500-7,000 and Rs 6,600-7,100 from previous levels of Rs 6,750-6,950 and Rs 6,850-7,050 per quintal, respectively.
Sugar: Sugar saw further rise in its prices for the second
straight week at the wholesale market in the national capital, driven by rising demand from retailers as well as bulk consumers.
Traders said pick up in demand from retailers and bulk consumers against pause in supplies from millers mainly lifted sugar prices.
However, reports of higher output capped the rise, they said.
Meanwhile, the country's sugar output rose by 6.5 per cent to 7.98 million tonnes in the first three months of the 2015-16 season, while exports were 3,00,000 tonnes in the same period, industry body ISMA said.
As per the latest production data released by Indian Sugar Mills Association (ISMA), the country's overall output has increased to 7.98 million tonnes in the October-December period of this year, up by 6.5 per cent from 7.49 million tonnes in the year-ago period.
Sugar ready M-30 and S-30 edged up to Rs 3,230-3,430 and Rs 3,220-3,420 from previous levels of Rs 3,200-3,400 and Rs 3,190-3,390 per quintal, respectively.
Mill delivery M-30 and S-30 followed suit and traded higher at Rs 2,990-3,240 and Rs 2,980-3,230 against last close of Rs 2,980-3,240 and Rs 2,970-3,230 per quintal, respectively.
In the millgate section, prices ended on a mixed note as Ramala, Anupshaher, Baghpat, Morna and Sakoti were settled marginally higher at Rs 3,000, Rs 2,990, Rs 3,010, Rs 3,010 and Rs 3,100 from previous week's close of Rs 2,990, Rs 2,980, Rs 2,990, Rs 3,000, Rs 3,000 and Rs 3,090 per quintal, respectively.
Jaggery: Weak conditions prevailed at the wholesale
jaggery market during the week as gur prices drifted on muted demand from local parties and stockists against sufficient stocks.
Traders said low demand from local parties and stockists against adequate stocks position on higher supplies from producing regions mainly led to the fall in gur prices.
At Delhi, gur chakku declined by Rs 50 to Rs 2,700-2,800 per quintal. Gur pedi and dhayya fell by Rs 100 each to Rs 2,900-3,000 and Rs 3,000-3,100 per quintal, respectively.
At Muzaffarnagar, gur raskat and chakku slipped to Rs 2,350-2,400 and Rs 2,400-2,650 from last close of Rs 2,400-2,450 and Rs 2,450-2,650 per quintal, respectively.
Khurpa dropped by Rs 100 to Rs 2,350-2,400 and laddo eased to Rs 2,500-2,600 from last week's closing of Rs 2,550-2,800 per quintal.
Dryfruits: Prices of select dry fruits dropped at the
wholesale market during the week as demand from retailers and stockists eased at existing higher levels.
Marketmen said fall in demand at prevailing levels against adequate stock position following increased arrivals from producing belts mainly led to fall in almond and other dry fruit prices.
Lower trend in producing regions also dampened trading sentiment to some extent, they said.
Almond California fell by Rs 200 to conclude at Rs 20,300 per 40 kg and its kernel prices eased by Rs 5 to finish at Rs 730-740 per kg.
Almond gurbandi and girdhi prices declined by Rs 100 each to settle at Rs 10,000-10,300 and Rs 6,700-7,000 per 40 kg, respectively.
Chilgoza-roasted declined by Rs 50 to conclude at Rs 1,400-1,600 per kg.
Cashew kernel (No 180, 210, 240 and 230) prices eased up to Rs 20 to settle at Rs 770-780, Rs 680-690, Rs 625-630 and Rs 580-585 per kg, while its pieces (2, 4 or 8) placed lower at Rs 530-595, Rs 530-590 and Rs 495-545 as against the previous close of Rs 535-600, Rs 535-600 and Rs 500-550 per kg on subdued demand.
Copra (superior quality) drifted by Rs 200 to finish at Rs 14,000-16,800 per quintal.
Kishmish Indian yellow and green fell up to Rs 500 to conclude at Rs 3,500-4,400 and Rs 3,800-7,300 per 40 kg, respectively.
Pistachio hairati and peshawari prices declined by Rs 5 each to close at Rs 1,345-1,395 and Rs 1,420-1,495 per kg, respectively.
Kirana: An easy trend continued unabated for yet another
week at the wholesale kirana market with prices of select spices declining further on increased selling by stockists against slowdown in buying activity at existing levels and closed with widespread losses.
Traders said sentiments remained weak owing to adequate stocks position following sustained selling by stockists amid increased arrivals from producing belts.
Besides, weak demand at existing level put pressure on prices, they said.
Black pepper prices were down by up to Rs 20 to conclude at Rs 670-870 per kg on subdued export demand.
Cardamom (jhundiwali and kanchicut) declined Rs 10 each to settle at Rs 1,430-1,440 and Rs 1,530-1,870 per kg.
Cardamom small varieties such as chitridar and extra bold declined by Rs 10 each to conclude at Rs 550-670 and Rs 670-680 per kg, respectively.
Coriander prices drifted by Rs 100 to finish at Rs 10,500-15,500 per quintal.
Cloves prices also slided to Rs 530-640 from previous closing of Rs 540-650 per kg.
Dry ginger and kalaunji drifted Rs 500 each to conclude at Rs 18,500-23,000 and Rs 20,000-29,000 per quintal, respectively.
In line with overall trend, prices of red chilli fell Rs 400 to conclude at Rs 10,500-17,000 per quintal, respectively.
Jeera common and jeera best quality also drifted Rs 500 each to end at Rs 14,000-14,500 and Rs 17,500-18,000 per quintal, respectively.
On the other hand, mace-red and yellow prices rose up to Rs 25 to settle at Rs 850-1,100 and Rs 1,080-1,090 per kg, respectively.
Poppyseed (Turkey, China and MP-RAJ) went up by Rs 10 each to settle at Rs 340-390, Rs 360-380 and Rs 400-435 per kg, respectively.
Bullion: Gold regaining the Rs 26,000-mark, featured
trading at the bullion market during the week, tracking a firm global trend amid pick up in buying by jewellers and retailers at domestic spot market.
Silver followed suit and recovered to close higher on increased offtake by industrial units and coin makers.
In the global market, the precious metal once again topped the USD 1,100 an ounce mark. For the week, it rose 3.6 per cent in New York.
Depreciation in rupee, which was fell to over three-week low against the dollar, also supported the upside in gold prices as it would make imports costlier.
At the forex market, the domestic currency weakened by 49 paise to close the week at over three-week low of 66.63 against the dollar after hitting a low of 66.97.
Bullion traders said sentiment got a boost after gold rallied to a three-week high in global markets following China's devaluation of its currency and rising geopolitical tensions spurred demand for safe-haven assets.
China's central bank lowered the yuan against the dollar by 0.51 per cent to 6.5646, the lowest since March 2011.
Besides, increased buying by jewellers and retailers at the domestic markets supported the upside in the precious metal prices, they said.
In the national capital, gold of 99.9 and 99.5 per cent purity commenced the week higher and day-to-day trading it rallied to two-month high of Rs 26,350 and Rs 26,200 per 10 grams, triggered by a firm global trend and jewellers buying.
Later, it met with resistance at higher levels at the fag-end and slipped to close at Rs 26,330 and Rs 26,180 per 10 grams respectively, still showing a significant rise of Rs 910 each.
Sovereign followed suit and rose by Rs 200 to Rs 22,400 per piece of eight gram.
Following gold, silver ready ended higher by Rs 500 to Rs 33,800 per kg and weekly-based delivery finished up by Rs 490 to Rs 33,825 per kg.
Silver coins also spurted by Rs 1,000 to Rs 48,000 for buying and Rs 49,000 for selling of 100 pieces.

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First Published: Jan 09 2016 | 12:42 PM IST

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