Edible oils remain higher on increased demand, global cues

Edible oils continued their upward march for the second straight week in the oils and oilseed market on the back of increased buying by vanaspati millers and retailers for the ongoing "Navratra" festival and coming marriage season demand amid a firming global trend. 

A few oils in the non-edible section also showed strength due to increased offtake by consuming industries.

The sentiment in edible oil remained firm as palm oil advanced in global markets after crude oil climbed to a 30-month high, lifting the appeal of vegetable oils for use in biofuels.  

Meanwhile, palm oil futures for June delivery were up by 1.1 per cent to $1,119 per metric tonne this week on the Malaysian Derivatives Exchange.    

Mustard expeller oil (Dadri) rose by Rs 50 to Rs 5,550 per quintal on local demand, while mustard pakki and kachi ghani oils rose by Rs 10 each to Rs 770-925 and Rs 925-1,025 per tin of 15 litres, respectively. 

Cottonseed mill delivery (Haryana) oil also moved up by Rs 50 to Rs 5,550 per quintal.

Taking cues from overseas markets, soyabean refined mill delivery (Indore) and soyabean degum (Kandla) oils were up by Rs 30 and Rs 10 to Rs 5,800 and Rs 5,740, respectively, while crude palm oil (kandla) gained Rs 30 to Rs 5,110 per quintal. 

Palmolein (rbd) and palmolein (Kandla) were also trading higher by Rs 30 each at Rs 5,700 and Rs 5,410 per quintal, respectively.

In the non-edible section, linseed oil rose by Rs 50 to Rs 4,650 per quintal on fresh paint's industries support.

Neem oil also moved up by Rs 50 to Rs 4,050-4,150 per quintal.

GRAINS: Rice basmati and other grains firmed up at the wholesale grains market during the week under review on emergence of stockists buying, driven by a pick-up in demand. Restricted arrivals from producing regions also supported the uptrend. 

Traders said emergence of stockists buying to meet increased demand mainly led to a rise in rice basmati and other grain prices. The country is expected to produce 94.01 million tonnes of rice in the 2010-11 crop year, as against 89.09 million tonnes last year.

In the rice section, rice basmati common and Pusa-1121 variety prices rose Rs 200 and Rs 300 to Rs 5,600-5,700 and Rs 4,500-5,500 per quintal, respectively, on retailer demand. 

On the other hand, non-basmati permal raw, permal wand, sela and rice IR-8, after moving in a tight range throughout the week, settled unchanged at Rs 1,850-1,900, Rs 2,050-2,150 Rs 2,100-2,175 and Rs 1,750-1,775 per quintal, respectively. 

In thin trade, maize also shot up by Rs 70 to Rs 1,340-1,350, while bajra was also trading higher by Rs 50 at Rs 950-960 per quintal.