Edible oils extend losses on output concerns, global cues

Edible oil prices fell up to Rs. 175 per quintal at the wholesale oils and oilseeds market during the week on increased selling by stockists, taking cues from global markets amid higher output concerns.

In range-bound trading, prices of non-edible oils remained flat in the absence of worthwhile activity.

Sentiments remained bearish in line with weakening trend in global markets after palm oil prices slumped for a third week on the concern that there won’t be enough demand to absorb the record edible oil supply.

Palm oil for April-delivery fell by 1.4 per cent during the week to USD 722 a metric tonne on the Malaysia Derivatives Exchange.

Besides, hopes of higher mustard seed output due to favourable weather conditions and higher imports against sluggish demand from millers, also put pressure on the prices of the edible oil, traders said.

The country’s vegetable oil import is likely to surge by over 16 per cent to 9.5 million tonne in the 2009-10, beginning October, the edible oil industry body SEA said.

In the national capital, groundnut mill delivery(Gujarat) fell by Rs. 150 to Rs 6,550 per quintal, while groundnut solvent refined dropped by Rs. 15 to Rs. 1,115-1,125 per tin.

Mustard expeller oil (Dadri) drifted further by Rs. 175 to Rs. 5,075 per quintal, while its mustard pakki and kachi ghani oils shed Rs. 5 each at Rs. 690-845 and Rs. 845-945 per tin of 15 litres respectively.

In line with general weakening trend, rice bran (physical), which remained steady for the major part of week, lost Rs. 50 at Rs. 3,850 per quintal.

Cottonseed mill delivery (Haryana) oil traded lower by the same margin at Rs. 4,000 per quintal.

Soyabean refined mill delivery (Indore) and soyabean degum (Delhi) fell by Rs. 60 and Rs. 50 to Rs. 4,610 and Rs. 4,550 per quintal on lower global advices.

Palmolein (rbd) and crude palm oil (ex-kandla) too traded lower by Rs. 20 and Rs. 50 to Rs. 3,480 and Rs. 4,050 per quintal.

Turning to non-edible section, linseed, mahuwa, castor and neem oils maintained around previous levels of Rs. 4300, Rs 4100, Rs. 6400-6500 and Rs. 4100-4200 per quintal on negligible buying activity from consuming industries.