Edible oils price strengthen on festive demand,global cues

Edible oil prices strengthened for the second straight week in the wholesale oils and oilseeds market.

Written by Agencies | New Delhi | Published: October 20, 2012 1:16:39 pm

Edible oil prices strengthened for the second straight week in the wholesale oils and oilseeds market on sustained buying by vanaspati millers and retailers to meet ongoing festive season demand amid a firm global trend.

Non-edible oils also moved up on increased demand from consuming industries.

Traders said increased buying by vanaspati millers and retailers to meet the ongoing festive and marriage season demand against restricted arrivals from producing belts mainly influenced edible oil prices.

Besides,firming global trend where palm oil climbed to over one-week high on speculation that China,the biggest cooking oil user,will boost imports and signs of increasing demand,also bolstered the trading sentiment,they said.

Palm oil for January delivery climbed to USD 819 a tonne on the Malaysia Derivatives Exchange,the highest level since October 11.

Meanwhile,the government extended ban on export of edible oils until further orders,but exempted foreign shipments of edible oil in branded consumer packs with a ceiling of 20,000 tonnes.

In the national capital,groundnut mill delivery (Gujarat) and mustard expeller (Dadri) oils rose by Rs 100 each to Rs 11,850 and Rs 8,300 per quintal,respectively on increased retailers demand.

Sesame and cottonseed mill delivery (Haryana) oils also attracted brisk buying by vanspati millers for the ongoing festive season and gained Rs 100 each to Rs 8,700 and Rs 7,200 per quintal,respectively.

Tracking a firming global trend,soyabean refined mill delivery (Indore) and soyabean degum (Kandla) oils moved up by Rs 50 each to Rs 7,500 and Rs 7,100,while crude palm oil (ex-kandla) traded higher by the same margin to Rs 7,300 per quintal,respectively.

Palmolein (rbd) and palmolein (Kandla) oils too traded in positive zone with a rise of Rs 50 each at Rs 7,650 and Rs 7,200 per quintal,respectively.

In line with a general firming trend,coconut oil rose by Rs 50 to Rs 1,350-1,400 per tin.

In the non-edible section,linseed oil shot up by Rs 100 to Rs 5,750 per quintal on increased demand from paint industries. Castor oil traded higher by Rs 100 to Rs 8,650- 8,750 per quintal on increased industrial offtake.

Neem oil found fresh buying support from soap units and edged higher by Rs 50 to Rs 4,600-4,700 per quintal.

Grains: Rice basmati fell on the wholesale grains market during the past week on increased supplies from producing belts against reduced offtake.

However,a few other bold grains attracted fresh buying support from consuming industries and ended higher.

Traders said increased supplies from producing belts against reduced offtake by stockists mainly pulled down rice basmati prices.

Meanwhile,paddy procurement in Haryana has gone up by 11 per cent so far as purchase by government agencies and private millers reached 21.25 lakh tonnes in the state during the current Kharif season.

In the national capital,rice basmati common and Pusa- 1121 variety plunged to Rs 4,200-4,900 and Rs 4,900-5,000 against last close of Rs 5,200-5,300 and Rs 4,500- 5,300 per quintal,respectively on increased supplies.

On the other hand,maize and bajra rose by Rs 50 and Rs 20 to Rs 1,350-1,360 and Rs 1,090-1,100 per quintal,respectively.

Barley in limited deals,also moved up by Rs 10 to Rs 1,295-1,310 per quintal. However,wheat dara (for mills) after moving both ways on alternate bouts of buying and selling,settled around previous levels of Rs 1,580-1,585 per quintal.

Pulses: The wholesale pulses market depicted a mixed trend during the past week as select pulses moved up on the back of increased buying by stockists as well as retailers to meet festive season demand while a few others remained weak on adequate supplies.

Traders said pick-up in festive demand mainly influenced the sentiments,helping select pulses to trade higher.

Adequate supplies against lack of buying support at prevailing higher levels kept other pulses remained weak,they said.

In the national capital,moth ended higher at Rs 4,400- 4,700 against last close of Rs 4,200-4,500 per quintal.

Gram edged up to Rs 4,750-6,000 from previous level of Rs 4,650-5,750,while its dal local and best quality were enquired higher by Rs 100 each to Rs 5,900-6,000 and Rs 6,100- 6,200 per quintal,respectively.

Besin Shaktibhog and Rajdhani followed suit and traded higher at Rs 2,170 each instead of Rs 2,110 each per 35 kg bag,respectively.

Peas white and green,in line with general trend,also ended higher at Rs 2,925-2,950 and Rs 3,025-3,125 from previous week’s close of Rs 2,820-2,870 and Rs 2,970- 3,020 per quintal,respectively.

On the other hand,urad eased to Rs 3,600-4,050 against last close of Rs 3,800-4,100,while urad dal chilka local,best and dhoya were down by Rs 100 each to Rs 4,400- 4,700,Rs 4,900-5,400 and Rs 5,300-5,400 per quintal,respectively.

Masoor small and bold declined by Rs 50 each to Rs 3,550- 3,750 and Rs 3,700- 3,900 per quintal. Its dal local and best quality lost Rs 100 each at Rs 4,200-4,300 and Rs 4,300-4,400 per quintal,respectively.

Malka local and best quality declined by Rs 100 each to Rs 4,000-4,100 and Rs 4,200-4,300 per quintal,respectively.

Arhar and its dal dara variety shed Rs 50 each at Rs 4,150-4,350 and Rs 5,750-5,950 per quintal,respectively.

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