Edible oils remain weak on sluggish demand, weak global cues

NEW DELHI: Edible oils continued their slide on the wholesale oils and oilseeds market for the second straight week largely in line with a weak global trend amid a subdued demand from millers as well local parties.

A few oils in the non-edible segment, also showed weakness due to reduced offtake by consuming industries.

Trading sentiments in edible oils remained weak as palm oil plunged in global markets, after palm oil declined to the lowest level in six weeks on speculation that inventories in Malaysia, the second-largest grower, may expand from the highest level in 16 months as production accelerates.

Also, slackened demand from millers as well as local parties at spot market too dampened the sentiment, traders said.

Meanwhile, palm oil futures during the week declined by 2.1 per cent to USD 1,034 a metric tonne , the lowest closing level since May 6 on the Malaysia Derivatives Exchange.

In the edible section, mustard expeller oil (Dadri) remained under pressure for the major part of the week, to close Rs 70 down at Rs 5,730 per quintal.

Mustard pakki and kachi ghani oils followed suit and declined by Rs 5 each to Rs 755-910 and Rs 910-1,010 per tin of 15 litres, respectively.