Vegetable Oil Prices Likely To Remain Stable, Say Traders

Though the market is still reeling under the scare of rupee instability and bulk trades are infrequent, large stocks and intervention of trading houses like MMTC and STC for import of Palmoil have helped traders in undertaking risks, dealers said.

Trade in the market for edible oils has started picking up, though traders are scared to make any large commitment, a dealer said adding, prices in the market was increasing by 20 paise everyday because of the dollar and traders are unwilling to supply in bulk since they stand to lose on the exchange rate.

There is also hope that market prices might improve with a normal crop and buying by trading houses, a trader said.

However, according to another trader, prices of oils are unlikely to go up in the forthcoming festive season and this would compel traders to sell at lower prices.

Traders are hopeful of a positive trend in prices of indigenous oils like mustard, which had picked up last week due to increased demand against a weak supply.

Last week, prices of edible oils had drifted on the oils and oilseeds market following withdrawal of support by vanaspati units and stockists and ended with widespread losses whereas most of non-edible oils had remained stable throughout the week on selective industrial demand.

Marketmen had blamed reports of downward trends from producing regions and slow down in buying activity by stockists to the fall in edible oil prices.