Edible oils fall on sluggish demand,global cues

Edible oil prices declined further in the wholesale oils and oilseeds market.

Extending losses for the fourth week in a row,edible oil prices declined further in the wholesale oils and oilseeds market due to sluggish demand at existing high levels amid weak global trends.

Some oils in the non-edible section also showed weakness on reduced offtake by industrial units and other consuming industries.

Trading sentiments turned weak as palm oil slumped to the lowest level in more than eight months in global markets after a US report showed larger-than-expected soybean

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inventories,and as a decline in crude oil prices cut the appeal of vegetable oils as bio-fuels.

Palm oil fell 2.6 per cent to USD 1,009 a metric tonne this week on the Malaysia Derivatives Exchange,a fifth weekly loss,the longest streak in almost three years.

Besides,sluggish domestic demand at prevailing levels further fuelled the downtrend.

In the edible oil section,mustard expeller oil (Dadri) eased by Rs 20 to Rs 5,680 per quintal,while sesame and cottonseed mill delivery oils (Haryana) fell by Rs 30 and Rs 10 to Rs 6,150 and Rs 5,440 per quintal respectively.

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Taking weak cues from overseas markets,soyabean refined mill delivery (Indore) and soyabean degum (Kandla) oils moved down by Rs 50 and Rs 60 to Rs 6,150 and Rs 5,750,while crude palm oil (kandla) lost Rs 30 to Rs 5,150 per quintal respectively.

Palmolein (rbd) and palmolein (kandla) oils too traded in negative zone with a loss of Rs 30 each to Rs 5,650 and Rs 5,350 per quintal respectively.

In the non-edible section,neem oil declined by Rs 50 to Rs 4,050-4,150 per quintal.