All oils like mustard, groundnut, soybean oil-oilseeds, crude palm oil (CPO) and palmolein and cottonseed oil increased in the country's edible oil-oilseeds market last week due to increase in festive demand amidst decrease in supply due to low imports due to high prices. Oilseed prices closed showing improvement.
Market sources said that an improvement was seen in the prices of imported edible oils in the week under review. In comparison to the previous week, the price of sunflower oil increased from $ 1,095-1,100 per tonne to $ 1,120-1,125 per tonne in the week under review. Similarly, the price of soybean degum oil increased from $1,050-1,060 per tonne to $1,065-1,070 per tonne and the price of CPO increased from $1,090-1,100 per tonne to $1,035-1,040 per tonne. This rise affected the prices of all other oils and oilseeds, which is the main reason for the improvement in edible oils.
Sources said that amid the situation of short supply, improvement was seen in mustard oil and oilseeds due to increase in demand during Navratri and festivals. This demand will increase further in future. Apart from this, the arrival of mustard also decreased to about 2.40 lakh bags in the week under review as compared to about 2.80 lakh bags in the previous week. Apart from this, mustard oil and oilseed prices also improved due to increase in the price of mustard by some Kachchi Ghani mills who wanted to buy good quality goods.
He said that there is improvement in edible oils in the week under review compared to last week, but in the case of soybean, despite the rise, its prices are still 5-7 percent below the Minimum Support Price (MSP). Similarly, the price of sunflower oil is only 20-25 percent below the MSP. Soybean oil and oilseeds prices improved due to less supply and stronger prices abroad.
Sources said that the price of groundnut is running 5-10 percent below the MSP. Due to the weather not being open, the arrival of groundnut is also less which will gradually increase further. There is improvement in the prices of edible oils due to strengthening in prices abroad and less supply.
He said the current recovery in CPO and palmolein is due to lower imports of CPO where importers have settled their import deals with some profits as the price of CPO is higher than that of soybean. In the last two months, about four lakh tonnes of deals were settled with marginal profits, which affected the imports of CPO and this reduction affected the prices of all other oilseeds. With this, the prices of CPO and palmolein oil became stronger.
Sources said that the reason for the improvement in cottonseed oil is also the assurance given by the government to the farmers that the cotton crop of the farmers will be purchased at MSP. Last year, cotton Narma was sold at a price about 10 percent below the MSP. The reason for this improvement is also the reduction in the arrival of cotton which is expected to increase further. But the special thing is that last year's cotton Narma price was Rs 6,000-6,200 per quintal, this year it is Rs 7,200-7,600 per quintal.
He said that about 70-72 percent cottonseed is obtained from cotton gin. Only when the prices of cottonseed meal improve in the market, farmers get good prices for cotton Narma. To create an environment to increase cotton production and to meet the needs of the animal husbandry industry, it is necessary that farmers get better prices for cottonseed meal. For this, it becomes necessary to crack down on the sale of fake cotton gin, whose business is booming.
Last week, the wholesale price of mustard seeds increased by Rs 100 and closed at Rs 6,775-6,825 per quintal. The price of Mustard Dadri oil increased by Rs 150 and closed at Rs 14,150 per quintal. Mustard Pakki and Kachchi Ghani oil gained Rs 20 each to close at Rs 2,195-2,295 and Rs 2,195-2,310 per tin (15 kg) respectively.
In the week under review, soybean grain and loose prices closed by Rs 55-55 each at Rs 4,885-4,935 per quintal and Rs 4,660-4,795 per quintal respectively. Similarly, prices of Soybean Delhi, Soybean Indore and Soybean Degum increased by Rs 550, Rs 400 and Rs 350 respectively to close at Rs 13,400, Rs 12,850 and Rs 9,600 per quintal respectively.
There was an improving trend in groundnut oil and oilseed prices as compared to last weekend. Groundnut oilseeds were up by Rs 100 at Rs 6,450-6,725 a quintal, groundnut oil Gujarat was up by Rs 125 at Rs 15,225 a quintal and groundnut solvent refined oil was up by Rs 30 at Rs 2,300-2,600 per tin.
Crude palm oil (CPO) prices rose by Rs 450 to close at Rs 12,000 per quintal due to increased demand and short supply situation. The price of Palmolein Delhi closed at Rs 13,700 per quintal with an improvement of Rs 550 and the price of Palmolein X Kandla oil closed at Rs 12,825 per quintal with an improvement of Rs 575. In the week under review, cottonseed oil closed at Rs 12,800 per quintal with an improvement of Rs 750.
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