Edible oils strengthen on seasonal demand, global cues

Edible oils strengthened further for the second straight week in the oils and oilseeds market during the week under review on sustained buying by vanaspati millers and retailers for the ongoing marriage season against restricted arrivals. 

A firm trend in overseas markets, where palm oil prices rose to almost a 28-month high further bolstered the trading sentiment. However, non-edible oils moved in a tight range on lack of worthwhile buying support and settled around previous levels.

Trading sentiment in edible oils remained firm as vanaspati millers and retailers continued to enlarge their poisitions to meet the ongoing marriage season demand amid tight supplies from producing regions, traders said.

They said a firm trend in Malaysia, the hub of global palm oil, also supported the uptrend. The palm oil rose 0.5 per cent to $1,118 a tonne on the Malaysia Derivatives Exchange, the highest level in more than 28 months.

In the national capital, groundnut mill delivery oil (Gujarat) shot up by Rs 200 to Rs 7,300 per quintal, while groundnut solvent refined oil gained Rs 15 to Rs 1,415-1,425 per tin on fresh buying by mills.

Mustard expeller oil (Dadri) inched up by Rs 10 to Rs 5,620 per quintal. Mustard pakki and kachi ghani oils followed suit and traded higher by a same margin to Rs 760-915 and Rs 915-1,015 per tin on local demand.

Sesame and cottonseed mill delivery (Haryana) oils also rose by Rs 20 and Rs 50 to Rs 6,170 and Rs 5,250 per quintal. In line with a general firm trend, soyabean refined mill delivery (Indore) and soyabean degum (kandla) oils were up by Rs 60 and Rs 300 to Rs 5,800 and Rs 5,400 per quintal.

Crude palm oil (ex-kandla) and palmolein (RBD) oils too traded higher by Rs 250 and Rs 70 to Rs 5,150 and Rs 5,770 per quintal. 

In the non-edible section, linseed,mahuwa and castor oils remained stable at Rs 4350, Rs 4,000 and Rs 8400-8500 per quintal, respectively in restricted buying activity. Neem, rice bran and palm fatty oils were also enquired around previous levels of Rs 3,850-3,950, Rs 3,300-3,400 and Rs 3,225-3,300 per quintal.

Grains: The wholesale grains market ended on a better note during the past week as wheat and rice basmati gained on pick up in demand from retailers due to the ongoing marriage season. 

Bajra and maize prices also moved up on increased industrial offtake amid restricted supply from producing regions.

Marketmen said pick up in demand from retailers due to the ongoing marriage season against limited arrivals from producing regions mainly led to a rise in wheat dara and rice basmati prices. 

Wheat dara, mostly consumed by flour mills, gained Rs 10 to Rs 1,295-1,300 per quintal. Atta chakki delivery followed suit and traded higher by a similar margin to Rs 1,300-1,305 per 90 kg.

In the rice section, rice basmati Pusa-1121 variety moved up by Rs 50 to Rs 5,000-5,600 per quintal.

Bajra and maize prices also seen in industrial demand and went up by Rs 5 and Rs 20 to Rs 825-835 and Rs 1,000-1,010 per quintal.