Edible oils gain on millers buying, global cues

NEW DELHI: There was no change in the pattern of trading at the wholesale oils and oilseeds market this week with prices of edible oils rising further on sustained buying by millers as well as retailers amid a firming trend overseas on speculation that inventories in Malaysia probably dropped.


Among non-edible oils, neem and rice bran oils also strengthened on increased offtake by soap units and other consuming industries.

The trading sentiment in select edible oils remained firm on persistent buying by vanaspati millers and retailers amid and strong advices from the global markets on speculation that inventories in Malaysia, the world's second-largest producer, probably dropped for a fifth month.

Globally, palm oil for delivery in August climbed to 2,457 ringgit ($794) a metric tonne on the Bursa Malaysia Derivatives, the highest price at close for the most-active futures since March 25.

In the national capital, groundnut mill delivery (Gujarat) and mustard expeller oil (Dadri) oils rose by Rs 50 and Rs 100 to Rs 10,150 and Rs 6,850 per quintal, respectively.

Mustard pakki and kachi ghani oils were also in some demand on incrased enquiries from local parties gained another Rs 10 each at Rs 1,290-1,370 and Rs 1,375-1,475 per tin, respectively.

Taking positive cues from the global market, soyabean refined mill delivery (Indore) and soyabean degum (Kandla) oils traded notably higher at Rs 7,650 and Rs 7,250 per quintal, respectively.

Palmolein (rbd) and palmolein (Kanala) oils in tandem with overall better trend, rose by Rs 50 and Rs 100 to Rs 5,900 and Rs 5,500 per quintal respectively. Crude Palm Oil (ex-kandla) also gained Rs 100 at Rs 5,000 per quintal.

However, coconut oil met with some pressure at the fag-end and shed Rs 20 at Rs 1,320-1,370 per quintal, rsepectively.

In the non-edible section, neem and rice oils continued their upward journey on industrial demand and strengthened to Rs 5,200-5,300 and Rs 3,200-3,300 per quintal, respectively.