Will edible oil be cheaper after palm oil prices drop? Find out what the experts say
21/12/2022 (PKB News) - The Malaysia exchange fell 1.5 percent, while the Chicago exchange is currently up 0.3 percent, sources familiar with the matter said.
Foreign market Oil and oilseeds markets in Delhi were in a bearish trend on Tuesday oilseeds Prices had mixed trends. On the one hand, the prices of mustard and groundnut oil-oilseeds, soybean oil and cottonseed oil have increased, but on the other hand, the price of crude palm oil has remained unchanged. According to market sources, prices on the Malaysia Exchange fell 1.5 percent, while the Chicago Exchange is currently 0.3 percent stronger.
The Chicago exchange rose 1.5 percent yesterday, sources said. Apart from this, the prices of mustard, groundnut oil-oilseeds, soybean and cottonseed oil have improved due to winter demand. Crude palm oil (CPO) prices closed down 1.5 percent on the Malaysian exchange. Soybean oilseed and palm oil prices remained unchanged in normal trade.
Prices of milk, cheese, ghee and butter may increase
He said that the upper circuit had to be installed after the December contract price of Tulasid oil cake rose by five and a half percent in the futures trade today. If the same situation continues, the demand for cakes may be affected, thereby increasing the prices of milk, cheese, ghee and butter, due to which inflation may rise. Sources said that on Monday, the Solvent Extractors Association (SEA) released data on the almost doubling of oil cake exports between April and November 2022, which certainly shows an increase over the same period last year.
Increased to 3.26 lakh tonnes as against 2.19 lakh tonnes
It should be noted that compared to other oilseeds, the contribution of mustard is the highest in this increase in exports. When foreign oil prices skyrocketed in April-May 2022, domestic oil prices such as mustard, groundnut, cotton, etc. were cheaper than imported oils, and deoiled cake (DOC) and oil cake exports of these domestic oilseeds helped the oil. Helped to meet the deficit. Sources said that according to data from Sopa, another Indore-based oil firm, exports of soya cake in the full financial year 2020-21 almost doubled to around 20.37 lakh tonnes from 9.84 lakh tonnes in the previous financial year (2019-20). Compared to these figures, soybean meal exports rose to 3.26 lakh tonnes in April-November 2022 from 2.19 lakh tonnes in the corresponding period of the previous fiscal.
Dependencies can be reduced
According to sources, according to the increase in production of oilseeds in the last one-two years, the export of oil cake is not much. According to sources, the government should grant duty-free import concessions only to soybean processing plants and refiners that export DOC in addition to extracting oil. It will also help reduce crushing losses due to difference between import and local prices of solvent mills by exporting DOC. According to sources, a sustainable and reliable way to overcome these problems can be to reduce the dependence on imports by increasing the production of domestic oil and oilseeds.
Oil and oilseeds prices were as follows on Tuesday
Mustard oilseeds – Rs 7,025-7,075 per quintal (42 per cent condition rate)
Groundnut – Rs 6,485-6,545 per quintal
Groundnut Oil Mill Delivery (Gujarat) – Rs.15,250 per quintal
Groundnut refined oil Rs 2,445-2,710 per tin
Mustard Oil Dadri – Rs 14,050 per quintal
Mustard Paki Ghani – Rs 2,130-2,260 per tin
Mustard Raw Ghani – Rs 2,190-2,315 per tin
Sesame oil mill delivery – Rs 18,900-21,000 per quintal
Soybean Oil Mill Delivery Delhi – Rs 13,600 per quintal
Soybean Mill Delivery Indore – Rs.13,350 per quintal
Soybean Oil Degem, Kandla – Rs 11,900 per quintal
CPO X-Kandla – Rs 8,500 per quintal