Edible oils turn weak on sluggish demand, global cues

Snapping a six-week long rally, edible oils fell back on the oils and oilseeds market during the week under review on less buying by millers as well as retailers at existing higher levels amid weakening global trend.

A few oils in the non-edible segment also showed some weakness due to reduced offtake by consuming industries.

Trading sentiment turned bearish after palm oil futures in Malaysia recorded their biggest-weekly decline in more than 10 months, as rival soybean oil tumbled on expectations of higher US crops and Asian importers slowed purchases.

Meanwhile, palm oil futures for November delivery contract fell 2 per cent to USD 810 a metric tonne on the Malaysia Derivatives Exchange, the lowest price since July 30.

The commodity slumped 6.4 per cent this week.

Besides, fall in demand from millers and retailers at existing higher levels, dampened the trading sentiment, traders said.

Adequate stocks positions and lower trend in producing regions was another factor behind the fall in prices, they added.

In the national capital, groundnut oil (Gujarat), which met with resistance and fell by Rs 200 to Rs 8,400 per quintal and groundnut solvent refined lost Rs 25 to Rs 1,450-1,460 per tin.

Mustard expeller oil (Dadri) declined by Rs 100 to Rs 5,250 per quintal and its pakki and kachi ghani oils enquired lower by by Rs 5 each to Rs 710-865 and Rs 865-965  per tin on lack of buying support from local parties.