New Delhi: A mixed trend in prices was seen in the country's oil and oilseeds market last week. Due to reduction in availability and increase in demand, the prices of mustard and soybean oil and oilseeds improved, while due to increase in the arrival of new crops, a decline was recorded in the prices of groundnut and cottonseed oil and oilseeds. The weak price of palm oil in Malaysia also affected the domestic market and palm-palmo olein oil became cheaper.
Mustard got support due to festive demand
According to market sources, the prices of mustard oil and oilseeds strengthened due to limited availability of mustard and increase in demand from raw ghee oil mills. In view of the upcoming festivals, the local demand for mustard oil has also increased.
Last week, mustard seeds rose by Rs 150 to Rs 8,400-8,450 per quintal. The price of Mustard Oil Dadri increased by Rs 300 to Rs 17,000 per quintal. The prices of Mustard Pakki and Kachchi Ghani oil also increased by Rs 40 each and closed at Rs 2,765-2,865 and Rs 2,765-2,915 per 15 kg tin respectively.
Strength seen in soybean also
Due to the festive season, local demand for soybean oil and oilseeds has increased. The purchase demand for soybean from big plants also remains good. However, due to high imports, soybean oil is still being sold at about Rs 2-3 per kg less than its cost.
In the week under review, wholesale prices of soybean grain and soybean loose increased by Rs 100 and Rs 50 respectively to Rs 6,050-6,100 and Rs 5,750-5,850 per quintal.
In Delhi, soybean oil increased by Rs 100 to Rs 15,250 per quintal, soybean Indore oil increased by Rs 50 to Rs 15,000 and soybean Degum oil increased by Rs 100 to close at Rs 12,200 per quintal.
The new crop supplanted peanuts and cottonseed.
On the other hand, due to increase in arrival of new crop, there was pressure on the prices of groundnut oil and oilseeds. The price of groundnut oilseed fell by Rs 150 to Rs 7,400-7,850 per quintal.
Groundnut oil fell by Rs 500 in Gujarat and closed at Rs 16,500 per quintal. Groundnut solvent refined oil also fell by Rs 75 to Rs 2,605-2,905 per 15 kg tin.
Similarly, with the start of arrival of the new crop, a big decline in the price of cottonseed oil was also recorded. Last week, cottonseed oil fell by Rs 450 and closed at Rs 14,550 per quintal.
Impact of decline in Malaysia on palm oil
According to sources, palm oil futures prices weakened in the foreign market due to increase in palm oil stocks in Malaysia and Indonesia. This also affected the domestic market.
During the week, CPO oil fell by Rs 25 to Rs 13,425 per quintal. Palmolein Delhi price fell by Rs 150 to Rs 15,350 per quintal and Palmolein Ex-Kandla oil fell by Rs 100 to close at Rs 14,100 per quintal.
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