Oil and Oilseeds Markets in Delhi Experience Mixed Trends
The foreign market saw oil and oilseeds markets in Delhi in a bearish trend on Tuesday, with prices experiencing mixed trends. Mustard and groundnut oil-seeds, soybean oil, and cottonseed oil prices have increased. However, crude palm oil prices have remained unchanged.
According to market sources, the Malaysia Exchange saw prices fall by 1.5 percent while the Chicago Exchange is currently 0.3 percent stronger. The Chicago exchange rose 1.5 percent yesterday, according to sources.
Mustard, groundnut oil-seeds, soybean, and cottonseed oil all experienced improved prices due to winter demand. Meanwhile, crude palm oil (CPO) prices closed down 1.5 percent on the Malaysian exchange, and soybean oilseed and palm oil prices remained unchanged in normal trade.
Possible Increase in Milk, Cheese, Ghee and Butter Prices
The December contract price of Tulasid oil cake rose by 5.5 percent in the futures trade on Tuesday. If the same trend continues, the demand for cakes may be affected, causing an increase in the prices of milk, cheese, ghee, and butter, leading to inflation.
On Monday, the Solvent Extractors Association (SEA) released data indicating an increase in oil cake exports between April and November 2022, almost double the figures from the previous year.
Increasing Exports May Reduce Dependencies
The contribution of mustard is the highest compared to other oilseeds in the increase of exports. When foreign oil prices skyrocketed in April-May 2022, domestic oil prices such as mustard, groundnut, and cotton, were cheaper than imported oils. Deoiled cake (DOC) and oil cake exports from these domestic oilseeds helped meet the deficit. Exports of soya cake also almost doubled in the full financial year 2020-21, from around 9.84 lakh tonnes in the previous year to 20.37 lakh tonnes.
The government should grant duty-free import concessions only to soybean processing plants and refiners that export DOC in addition to extracting oil, according to sources. This will help reduce crushing losses due to differences between import and local prices of solvent mills by exporting DOC. 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, they added.
Oil and Oilseeds Prices 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