Edible oils in weak zone

COMMODITY SPIKES

According to the US data released on Friday, global oilseed production for 2006-07 is estimated at 395.4 million tonne (MT), down 0.1 MT compared with estimates in 2005-06. Global soybean production is projected at 226.9 MT, up 0.1 MT.

Improved yield prospects on the back of favourable climatic condition in the early days of growing is expected to push up Argentina's soybean output by 0.5 MT to a record 42.5 MT.

India's rapeseed output is estimated at 6.2 MT, down 0.3 MT based on reduced harvested area reflected by the government data on planting progress.

However, the price decline in select edible oil continued yet another week on the wholesale markets in Delhi due to consistent selling by stockists in the face of sluggish demand from millers and local retailers.

In contrast, groundnut mill delivery oil firmed up due to restricted arrivals from producing belts amidst pause in selling by stockists. Castor and linseed oils, in the non-edible section, however, firmed on the back of pick up in industrial demand.

Cottonseed for mill delivery ended in the negative zone with a moderate decline of Rs 40 at Rs 4,260 per quintal against last close of Rs 4,300 per quintal. The decline was mainly attributed to uninterrupted stockist selling.

Soybean refined for mill delivery and soybean degum (Delhi) too were under pressure largely in line with global trends and drifted to close the week lower by Rs 50 each at Rs 4650 per quintal and Rs 4,550 per quintal respectively. Crude palm oil (ex-Kandla) slipped to Rs 4,140 per quintal from Rs 4,170 per quintal at the beginning of the week.