Edible oils' prices dip on sluggish demand, global cues

Select edible oils extended losses for the second straight week at the wholesale oils and oilseeds market during the week under review on sluggish demand from vanaspati millers and retailers amid weakening trend in global markets.

However, groundnut and mustard oils found local buying for the marriage season and hence, traded higher. In the non-edible oil section, castor oil showed some weakness owing to reduced industrial offtake and ended in the negative territory.

Sentiment turned bearish after the palm oil's prices dropped in the global market for a second straight week, as losses in soybeans and soybean oil reduced the appeal of the world's most-consumed cooking oil.

Meanwhile, palm oil futures for July-delivery ended lower $770 a metric tonne at the Malaysia Derivatives Exchange. Marketmen said fall in demand from vanaspati millers and retailers due to rising mercury amid weakening trend in the global market also put some pressure on the wholesale edible oil prices.

In the edible oil section, sesame mill delivery oil, which remained steady at the major part of week, lacked necessary buying support at the fag-end and fell by Rs 100 to Rs 5,800 per quintal.

Soyabean refined mill delivery (Indore) and soyabean degum (Delhi) oils declined by Rs 10 each to Rs 4,430 and Rs 4,340 per quintal, respectively.

Palmolein (rbd) and crude palm oil (Ex-kandla) also traded lower by Rs 20 and Rs 10 to Rs 4,120 and Rs 3,630 per quintal, respectively, on lower global trend. Cottonseed mill delivery (Haryana) also declined by Rs 20 to Rs 4,000 per quintaL.

On the otherhand, mustard expeller oil (Dadri) gained Rs 60 to settle at Rs 4,500 per quintal on local buying, while groundnut solvent refined was up by Rs 50 to Rs 6,850 per quintal on retailers' demand.

Groundnut solvent refined inched up by Rs 5 to Rs 1,135-1,145 per tin of 15 litres. In the non-edible oil section, castor oil lost Rs 50 to Rs 6,450-6,550 per quintal on reduced industrial offtake.