27/11/2011 (MSN) - Snapping a two-week gaining streak, edible oil prices drifted South in the wholesale oils and oilseeds market during the past week as demand dropped at prevailing higher levels amid a weak trend overseas.

Adequate stock availability amid increased supply also dampened the trading sentiment.

A few oils in the non-edible section also lost ground due to reduced offtake by stockists on sluggish demand from consuming industries.

The trading sentiment turned bearish after palm oil prices dropped in the major trading hub of Malaysia, as slowing economic growth and depreciating currencies curbed demand among importers.

Meanwhile, palm oil futures fell by 4.3 per cent on the Malaysia Derivatives Exchange during the week.

In the national capital, groundnut mill delivery oil (Gujarat) fell by Rs 200 to Rs 8,500 per quintal, while groundnut solvent refined ended flat at Rs 1,580-1,590 per tin.

Mustard expeller oil (Dadri), sesame and cottonseed mill delivery (Haryana) oil prices also moved down by Rs 50 each to Rs 6,850, Rs 6,700 and Rs 6,250 per quintal, respectively.

Taking negative cues from overseas markets, soyabean refined mill delivery (Indore) and soyabean degum (Kandla) oil prices dropped by Rs 200 and Rs 100 to Rs 6,800 and Rs 6,350, respectively, while crude palm oil (ex-Kandla) lost Rs 100 to Rs 6,150 per quintal.

Palmolein (rbd) and palmolein (Kandla) oil followed suit and declined by Rs 130 and Rs 120 to Rs 6,670 and Rs 6,320 per quintal, respectively.

In the non-edible section, linseed oil shed Rs 50 to Rs 4,600 per quintal due to a dearth of demand from the paint industry.

Castor oil was also traded lower by the same margin at Rs 8,300-8,400 per quintal on reduced offtake by soap units and other consuming industries. .