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Edible oils extend losses on sluggish demand

Edible oils extended losses for the third week in a row in the oils and oilseeds market.

Written by Agencies | New Delhi | September 22, 2012 1:41:55 pm

Edible oils extended losses for the third week in a row in the oils and oilseeds market during the past week on falling demand at prevailing higher levels amid a weakening global trend.

A few oils in the non-edible section also declined on reduced offtake by consuming industries.

Markets remained closed on Thursday in view of ‘Bharat Bandh’ called by opposition and traders associations to protest the government’s decision to hike diesel prices and allow FDI in multi-brand retail sector.

Traders said sentiment remained weak after palm oil fell to the lowest level in almost two years in global markets as rising inventories in Malaysia,the second-largest producer,and a better-than-expected US soybean harvest eased concerns about dwindling cooking-oil supplies.

Meanwhile,palm oil for the December-delivery dropped 2 per cent to USD 905 a tonne on the Malaysia Derivatives Exchange,the lowest since October 2010. Besides,subdued domestic demand at prevailing higher levels against adequate supplies further fuelled the downtrend in edible oil prices,they said.

In the national capital,groundnut mill delivery oil (Gujarat) declined by Rs 100 to Rs 11,900,while sesame mill delivery oil which remained steady for the major part of week,met resistance and shed Rs 50 at Rs 8,600 per quintal.

Mustard expeller (Dadri) fell by Rs 150 to Rs 8,200 per quintal and mustard pakki and kachi ghani oils traded lower by Rs 10 each to Rs 1,200-1,340 and Rs 1,355- 1,455 per tin,respectively.

Taking negative cues from overseas markets,soyabean refined mill delivery (Indore) and soyabean degum (Kandla) oils dropped by Rs 150 each to Rs 7,600 and Rs 7,200,respectively. Crude palm oil (ex-kandla) shed Rs 50 to Rs 7,400 per quintal. Palmolein (rbd) and palmolein (Kandla) oils too traded lower by Rs 100 each to Rs 7,750 and Rs 7,300 per quintal.

In the non-edible section,linseed oil declined by Rs 50 to Rs 5,700 per quintal on weak demand from paint industries.

Neem and castor oils also moved down by Rs 50 each to Rs 4,550-4,650 and Rs 8,600-8,700 per quintal,respectively.

Pulses: A declining trend in pulses was seen in the wholesale pulses market during the week under review on slackened demand at existing higher levels amid increased supplies.

Traders said sufficient supplies against reduced offtake by stockists due to slackened demand at prevailing higher levels mainly kept pressure on pulses.

In the national capital,urad moved down to Rs 3,800-4,100 from previous level of Rs 3,800-4,250 per quintal. Its dal chilka local and best declined by Rs 100 and Rs 50 to Rs 4,500-4,800 and Rs 5,000-5,500,respectively. Urad dal dhoya weakened by Rs 100 to Rs 5,400-5,500 per quintal.

Moong and moong dal chilka local fell by Rs 200 each to Rs 4,800-5,300 and Rs 5,150-5,550,respectively. Moong dal dhoya local and best quality lost similar amount to Rs 5,650-5,750 and Rs 6,350-6,450 per quintal.

Masoor small and bold declined by Rs 50 each to Rs 3,800-4,000 and Rs 3,950-4,150 per quintal,respectively. Its dal local and best quality weakened by Rs 100 each to Rs 4,600-4,700 and Rs 4,700-4,800 per quintal.

In line with a general weakening trend,Malka local and best quality lost Rs 100 each at Rs 4,200-4,300 and Rs 4,400-4,500,while arhar and its dal dara variety were enquired lower by similar margin to Rs 4,100-4,400 and Rs 5,700-5,900 per quintal,respectively.

Lobia eased to Rs 4,100-4,800 from last close of Rs 4,300-5,000 and peas white lost Rs 150 at Rs 2,850-2,900 per quintal.

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