Edible oils rebound on millers buying, global cues

Select edible oil prices recovered on the wholesale oils and oilseeds market during the past week on buying by vanaspati millers, driven by ongoing marriage season amid a firming global trend. A few oils in the non-edible section, also moved up on increased offtake by industrial units and other consuming industries. 

Trading sentiment in edible oils turned better after palm oil advanced to the highest in two weeks in Malaysia as crude oil and soybeans climbed up. 

Meanwhile, palm oil advanced 2.5% this week at $1,089 a tonne on the Malaysia Derivatives Exchange, the highest since April 28. Besides, pick-up in retailers demand in view of ongoing marriage season further supported the uptrend in edible oil prices.  

In the edible section, soyabean refined mill delivery (Indore) and soyabean degum (Kandla) oils rose by Rs 90 each to Rs 6,170 and Rs 5,820, respectively, while crude palm oil (ex-kandla) traded higher by the same margin to Rs 5,270 per quintal.

Sesame mill delivery and cottonseed mill delivery (Haryana) oils traded higher by Rs 20 each to Rs 6,200 and Rs 5,470 per quintal, respectively. Palmolein (rbd) and palmolein (kandla) oils also jumped up by Rs 140 each to Rs 5,840 and Rs 5,540 per quintal, respectively.

However, groundnut mill delivery (Gujarat), oil moved in a tight range on small alternate bouts of trading and settled around previous levels of Rs 8,000, while groundnut solvent refined held steady at Rs 1,350-1,360 per tin, respectively.

Grains: In restricted activity, rice basmati declined on the wholesale grains market during the week under review on sluggish demand against adequate supply.

However, fag-end buying by flour mills helped wheat dara prices to move up. Barley and bajra also traded in positive zone on increased industrial demand against slow down in arrivals.

Traders said sluggish demand against adequate stocks kept pressure on the rice basmati prices but increased industrial demand fall in arrivals from producing belts helped barley and bajra prices to strengthen. 

In the rice section, rice basmati common and Pusa-1121 variety declined by Rs 100 each to Rs 5,300-5,400 and Rs 4,200-5,200 per quintal, respectively. However, rice permal raw, wand, sela and IR-8 were trading in a tight range and settled around previous levels of Rs 1,825-1,875, Rs 2,000-2,100, Rs 2,100-2,150 and Rs 1,700-1,725 per quintal, respectively.

On the other hand, wheat dara (for mills) which remained stable during the major part of week, found some support from flour mills and gained Rs 10 to Rs 1,175-1,180 per quintal.

Atta chakki delivery followed suit and traded higher by Rs 20 to Rs 1,200-1,205 per 90 kg, while maida up by Rs 20 to Rs 720-750 per 50 kg. On the other hand, bajra moved up by Rs 10 to Rs 1,020-1,030, while barley shot up by Rs 75 to Rs 1,375-1,400 per quintal on increaased demand from consuming industries.

Pulses: In mixed pattern of trading, kabli gram and rajmah chitra prices rose on the wholesale pulses market during the past week on stockists buying due to pick up in demand from retailers against tight supplies, while arhar, moth and masoor declined on adequate stocks.

Traders said besides rising demand from retailers, restricted arrivals from producing regions also led to rise in select wholesale pulses prices.

In the national capital, kabli gram small variety gained the most by rising Rs 400 to Rs 5,100-6,600 per quintal.

Moong and its dal chilka local rose by Rs 75 and Rs 100 to Rs 4,075-5,075 and Rs 5,100-5,500, while dal moong dhoya local and best quality traded higher by Rs 100 each to Rs 5,400-5,600 and Rs 6,000-6,200 per quintal, respectively.

Gram moved up by Rs 75 to Rs 2,300-2,325 and its dal local and best quality were higher by Rs 150 each to Rs 2,650-2,665 and Rs 2,750-2,850 per quintal, respectively.

Rajmah chitra (Pune), (China) and red varieties were also seen in demand and advanced by Rs 100 each to Rs 3,500-3,900, Rs 3,600-4,100 and Rs 3,850-3,950 per quintal, respectively.

On the other hand, masoor small and bold lacked necessary buying support and shed Rs 50 each to Rs 3,000-3,200 and Rs 3,150-3,400 per quintal, respectively. Its dal local and best quality followed suit, and traded lower by the same margin to Rs 3,550-3,650 and Rs 3,850-4,150 per quintal, respectively.

Arhar and its dal dara variety declined by Rs 100 and Rs 50 to Rs 3,400-3,900 and Rs 5,000-5,400, respectively, while moth lost Rs 100 to Rs 1,900-2,200 per quintal.