Edible oils turn weak on fall in demand, adequate supply

In restricted trading activities, edible oil fell in the wholesale oils and oilseeds market during the past week as domestic demand declined after the festival season against increased supplies.

A few oils in the non-edible section also eased on reduced offtake by industrial units. Business volumes declined brief five-day week as market remained closed on Wednesday for "Vishkarma Puja" and lackluster trading on Diwali.

Traders said edible oil prices declined on easing demand after ending of festival season led by Diwali against adequate supplies into the markets.

Reduced offtake by industrial units and other consuming industries such as paint and soap makers helped in pulling down non-edible oil prices, they said.

Meanwhile, reports of higher import of edible oils this season further influenced the market sentiment. vegetable oil imports surged by 17 per cent to over ten million tonnes in the 2011-12 marketing year that ended last month.

In the national capital, groundnut mill delivery Gujarat) and mustard expeller (Dadri) oils fell by Rs 200 and Rs 100 to to Rs 11,700 and Rs 8,200 per quintal respectively on fall in demand from vanaspati units and retailers.

Sesame and cottonseed mill delivery (Haryana) oils also declined by Rs 50 and Rs 250 to Rs 8,700 and Rs 6,900 per quintal, respectively.

In line with a general weak trend, soyabean refined mill delivery (Indore) and soyabean degum (Kandla) oils plunged by Rs 500 each to Rs 7,100 and Rs 6,700 respectively, while crude palm oil (ex-kandla) lost Rs 300 at Rs 6,900 per quintal.

Palmolein (RBD) and palmolein (Kandla) oils too traded lower by Rs 500 each to Rs 7,200 and Rs 6,750 per quintal, respectively.

In the non-edible section, linseed oil declined by Rs 50 to Rs 5,850 per quintal on weak demand from paint industries.

... contd.

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