New Delhi: There was a decline in palm and palmolein oil prices in the country's oil-oilseeds market on Friday due to weak demand due to the current prices remaining high amid decline in the import of crude palm oil (CPO) and palmolein oil in the month of December. Soybean oilseed prices also closed with a decline due to weak demand for de-oiled cake (DOC). Market sources have given this information. On the other hand, due to the strength of Chicago Exchange, the price of soybean oil remained strong. Before the arrival of the new crop, apart from mustard oil and oilseeds, the prices of groundnut oil and oilseeds remained at the previous level due to the compulsion to sell at prices below the minimum support price (MSP).
Due to weak performance, cottonseed oil also closed at previous level. The Malaysia Exchange closed with a very slight improvement at 3.30 pm, while the Chicago Exchange had closed about 3.5 percent weaker last night and is currently improving. Market sources said that the share of palm and palmolein in the edible oils imported into the country has decreased by about 48 percent during the month of December.
Palmolein oil price below that of soybean
At present, the price of CPO is almost equal to that of soybean, while the price of palmolein oil has become about $ 30 below soybean oil. Market sources said that at present the price of CPO in India is $ 1,135-1,140 per tonne, while the price of palmolein is $ 1,105 per tonne. The price of soybean oil is also around $1,135 per ton. Sources said the latest import duty price on CPO is Rs 27 per kg while that on palmolein will be Rs 37 per kg. In this situation, there is a possibility of increase in import of CPO due to low import duty price. However, this import will increase only when CPO becomes cheaper than the price of soybean oil.
At present, buying is weak due to the current price being around that of soybean. Due to this there is decline in palm and palmolein. This situation is also favorable for the running of the processing mills installed in the country. Earlier, importers used to import more palmolein due to it being cheaper than CPO, due to which the work of processing mills was reduced. There is also a decline in soybean oilseeds due to weak demand for DOC in the country due to expensive prices. Unless there is a market for DOC, soybean will not be consumed. For this reason, oilseed farmers are forced to sell soybean in the spot market at a price about 15 percent below the MSP.
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Strength in soybean oil prices
On the other hand, soybean oil prices remained strong due to improvement in Chicago Exchange. Sources said that before the arrival of the new mustard crop next month, the prices of mustard oil and oilseeds closed at the previous level. While the spot price of groundnut remained 15-20 percent below the MSP, the prices of groundnut oil and oilseeds also remained the same. Despite the improvement in the price of cottonseed meal, the price of cottonseed oil also remained the same. The arrival of cotton is decreasing in the entire country. Whatever cotton is left has been stocked by strong farmers who are selling it thoughtfully.
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