Edible oil falls on fresh selling, weak global cues

NEW DELHI: Select edible oils such as palmolein, soyabean and crude fell in the national capital during the past week on emergence of selling by stockists on back of weakening trend on the global front.

Bucking the general weak trend, groundnut and sesame oils showed some strength on retailers demand for the ongoing marriage season and recorded fresh gains.

As selling pressure continued to gather momentum, some non-edible oil also lost substantial ground on lack of buying from industrial units.

Trading sentiment turned bearish after reports of palm oil in Malaysia dropping as record stockpiles and the world economic slowdown crimps orders for its use in food and fuel applications.

Palm oil futures have fallen 68 per cent from a record in March as the deepening credit crisis and global recession cut demand for raw materials.

The global market, which normally sets price trend in the domestic markets here were partly weakened, as crude oil declined to nearly four-year low levels. Palm and soyabean oils, normally used for cooking, also substituted crude as bio-fuel.

Reports that state-run trading company PEC Ltd invited bids for selling 2,125 tonnes of crude degummed soyabean oil and another government body invited bids for sale of 2,000 tonnes of imported RBD palmolein oil were other dampening factors for the trading sentiment.