Weekly market report: Edible oils slip on sluggish demand, weak global cues

Jan 12 2013, 14:00 IST
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SummaryEdible oil prices slipped on the wholesale oils and oilseeds market.

Edible oil prices slipped on the wholesale oils and oilseeds market during the past week on sluggish demand, against adequate stocks position and a weak global trend.

Linseed oil in the non-edible section, traded lower on reduced industrial offtake.

Sentiment in edible oils turned bearish as traders trimmed their positions, driven by sluggish demand against adequate stocks position, traders said.

Palm oil posted its biggest weekly fall since November last year. Record reserves and declining exports in Malaysia, the second-largest producer, prompted analysts to push back forecasts for a price rebound during the low-output season which influenced the sentiment, traders added.

Meanwhile, palm oil fell by 4.1 per cent this week, the lowest since November 9 last year, on the Malaysian Derivatives Exchange.

In the national capital, groundnut mill delivery (Gujarat) and mustard expeller (Dadri) oils declined by Rs 50 each to Rs 12,250 and Rs 8,200 per quintal, respectively on sluggish demand from retailers.

Taking negative cues from overseas markets, palmolein (RBD) and palmolein (Kandla) oils fell by Rs 160 each to Rs 7,340 and Rs 6,840 per quintal, respectively.

Soyabean refined mill delivery (Indore) and soyabean degum (Kandla) oils followed suit and lost Rs 50 each at Rs 7,400 and Rs 6,950 per quintal, respectively.

Meanwhile, sesame and cottonseed mill delivery (Haryana) oils moved in a narrow range in limited deals and ended steady at Rs 10,150 and Rs 7,100 per quintal, respectively.

In the non-edible section, linseed oil lacked necessary buying support from paint's industries and shed Rs 50 at Rs 6,100 per quintal.

Grains: Firm conditions prevailed on the wholesale grains market during the week as rice basmati and a few other bold grains strengthened on sustained buying by stockists against limited arrivals from producing region.

However, wheat moved down on reduced offtake against sufficient supplies and expectations of bumper crop.

Marketmen said sustained buying by stockists against restricted arrivals from producing regions strengthened basmati rice and a few other bold grain prices.

Reduced offtake by flour mills and stockists against adequate stocks availability kept pressure on wheat, traders said.

Meanwhile, government plans to cut price of wheat for bulk consumers, inorder to check rising prices.

In the national capital, rice basmati Pusa-1121 remained in demand and advanced to Rs 6,500-7,100 from previous Rs 6,300-7,000 per quintal.

Other bold grains like maize and barley rose by Rs 20 each to Rs 1,500-1,530 and Rs 1,430-1,440, respectively, while bajra inched up by Rs 5

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