Edible oils remain down on weak global cues; sluggish demand

NEW DELHI: Continuing the losing-streak, edible oils fell further in the national capital during the week under review on persistent selling by stockists, sparked by heavy losses in the global markets.

Bucking the weakening trend, mustard oil shot up on the back of increased demand from local buyers in view of festive season.

Market analysts said trading sentiment remained weak as palm oil futures in Malaysia recorded a third weekly decline amid concern that demand will decline because of a worldwide recession and mounting inventories.

They said absence of demand as festive buying has been completed, also put pressure on the wholesale edible oil prices in wholesale domestic market.

"Fears lingering global financial crisis will hurt demand for commodities, including edible oils amid rising inventories continued to weigh on the falling prices," said a wholesale oil trader in the national capital.

Meanwhile, state-run trading firm MMTC floated a tender for import of 26,500 tonnes of edible oil.

Palmolein (rbd) remained under selling pressure major part of the week and lost Rs 200 to Rs 4,250 per quintal.