Edible oils fall on sluggish demand, global cues

NEW DELHI: Edible oil prices fell on the wholesale oils and oilseeds market during the past week owing to slackened demand at prevailing higher levels amid a weak global trend.

However, castor oil in the non-edible section found selective buying from consuming industries and ended higher.

Traders said sluggish demand against adequate supplies from producing regions mainly led to the fall in edible oil prices.

Weak global trend where palm oil slumped the most in more than eight months after the US raised estimates for the country's soybean output and stockpiles before the next harvest boosted the outlook for global oilseed supplies and influenced the sentiment, they said.

Meanwhile, palm oil fell by 3.5 per cent to $724 a tonne, the steepest drop since November 5 this week on the Malaysian Derivatives.

In the national capital, delivery of sesame mill and groundnut mill (Gujarat) oils fell by Rs 300 to Rs 200 to Rs 10,800 and Rs 9,800 per quintal, respectively.

Tracking a weak global trend, soyabean refined mill delivery (Indore) and soyabean degum (Kandla) oils declined by Rs 100 each to Rs 7,200 and Rs 6,900 per quintal, respectively.

Palmolein (rbd) and palmolein (Kandla) oils followed suit and lost Rs 150 each at Rs 5,700 and Rs 5,300 per quintal, respectively.

However, in the non-edible section, Castor oil rose by Rs 100 to Rs 9,200-9,300 per quintal on increased industrial demand.