Sucheta Dalal :Edible oil remains in negative mode on increased supply
Sucheta Dalal

Click here for FREE MEMBERSHIP to Moneylife Foundation which entitles you to:
• Access to information on investment issues

• Invitations to attend free workshops on financial literacy
• Grievance redressal

 

MoneyLife
You are here: Home » What's New » Edible oil remains in negative mode on increased supply
                       Previous           Next

Edible oil remains in negative mode on increased supply  

September 26, 2009

 

Weak trend in Malaysian palm oil also put some pressure on the domestic edible oil prices. Traders said sentiments in edible oils remained weak after reports that State Trading Corporation will import 12,000-15,000 tonnes of RBD palmolein to improve supplies.
 
They said slowdown in buying by vanaspati millers following the end of ongoing "Navratras" festival also weighed on the prices.
 
Meanwhile, December-delivery palm oil futures fell 0.2% to $630 per tonne on the Malaysia Derivatives Exchange.
 
In the edible section, soyabean refined mill delivery and soyabean degum (Delhi) fell by Rs50 each to Rs4,400 and Rs4,150 per while crude palm oil (ex-kandla) and palmolein (rbd) lost Rs100 and Rs50 at Rs3,220 and Rs3,950 per quintal.
Mustard expeller oil declined by Rs50 to Rs5,090 per quintal, while mustard pakki and kachi ghani oils remained flat at Rs680-835 and Rs835-925 per tin of 15 litres in limited deals.
 
Cottonseed mill delivery and rice bran (physical) oils were also under some pressure and closed Rs50 each down at Rs3,950 and Rs3,800 per quintal, respectively. Sesame mill delivery oil plunged by Rs200 to Rs6,000 per quintal.
However, groundnut mill delivery oil after moving in restricted range on some deals, settled at previous level of Rs6,000 per quintal.
 
In the non-edible section, linseed oil rose by Rs50 to Rs4,100 per quintal on pick up paints industries demand on account of festival and marriage season.
 
Neem oil also gained Rs50 to Rs3,800-Rs3,900 per quintal on fresh enquiries from soap manufacturing units.
However, mahuwa and castor oils held steady at Rs4,100 and Rs6,100-Rs6,200 per quintal in limited deals.
 
Rice bran and palm fatty oils continued to be asked around previous levels of Rs3,400-Rs3,500 and Rs3,175-Rs3,250 per quintal in negligible buying activity from consuming industries.
 
Grains: Snapping a two-week rising streak, wheat dara prices turned somewhat weak in the national capital during the past week on fresh arrivals amid reduced offtake by flour mills and prices fell by Rs10 per quintal.
 
However, basmati rice maintained the downward trend in the absence of worthwhile buying activity and lost further grounds, while bajra shed fresh ground on sluggish industrial demand.
 
Traders said fall in demand from rolling flour mills against adequate stocks in the market mainly put pressure on wheat prices in the national capital.
 
Wheat dara (for mills), mostly consumed by flour mills, shed Rs10 at Rs1,200-Rs1,220, while wheat MP (deshi) held steady at Rs1,625-Rs1,925 per quintal. Atta chakki delivery ruled flat at Rs1,200-Rs1,210 per 90 kg.
 
However, maida and sooji maintained around last week's levels of Rs745-Rs755 and Rs800-Rs805 per 50 kg on festive demand.
 
In the rice section, basmati common and Pusa-1121 varieties continued to face increased arrivals pressure and dipped by Rs400 and Rs700 to Rs8,000-Rs8,200 and Rs6,300-Rs7,500 per quintal.
 
Bajra and jowar yellow too remained in negative zone with loss of Rs40 and Rs25 to Rs810-Rs820 and Rs925-Rs1,025 per quintal.

-- Sucheta Dalal



 



Recent Comments