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New Delhi: Amidst the strength in foreign markets, limited improvement was recorded in the prices of mustard oil and oilseeds in the domestic market last week. On the other hand, the prices of soybean oil, oilseeds and cottonseed oil closed with a decline. Crude palm oil (CPO) and palmolein oil prices remained stable due to selling pressure below cost. There was no change in groundnut oil and oilseeds due to weak demand at high prices.

Malaysia Exchange will remain closed on Monday due to holiday.

Prices supported by limited availability of mustard

According to market sources, there was a slight increase in the prices of mustard oil and oilseeds last week due to reduced availability of mustard. However, procurement of mustard remains weak due to high prices. Experts say that when oilseeds become expensive, the oil produced from them will naturally be available at higher prices.

In the week under review, mustard seeds closed at Rs 8,300-8,350 per quintal with an increase of Rs 50. The price of Mustard Oil Dadri increased by Rs 100 to Rs 16,800 per quintal.

The prices of mustard pure and raw ghani oil also improved by Rs 15 each. Both closed at Rs 2,735-2,835 and Rs 2,735-2,885 per tin (15 kg), respectively.

Slight decline in soybean prices

According to sources, big soybean plants keep changing its prices with the aim of purchasing soybean at a lower price from farmers. Last week, due to reduction in soybean prices by oil plants, there was a slight decline in soybean oil and oilseeds.

Despite reduced availability of soybean, there is domestic demand for its de-oiled cake (DOC). Despite this, importers continue to sell soybean and palm oil at prices below the cost. For this reason, despite the strength in foreign markets, its full impact is not visible in the domestic market.

During the week, the wholesale prices of soybean grains and soybean loose fell by Rs 100 each. Both closed at Rs 6,675-6,725 and Rs 6,525-6,625 per quintal respectively.

In Delhi, soybean oil decreased by Rs 50 to Rs 15,750 per quintal, soybean Indore oil decreased by Rs 100 to Rs 15,550 and soybean degum oil decreased by Rs 150 to Rs 12,050 per quintal.

Peanut prices stable

Market sources said that the cooperative organization NAFED has stock of groundnuts. In such a situation, fluctuations in the market price of groundnut largely depend on the sales of NAFED.

Due to weak buying at higher prices, the prices of groundnut oil and oilseeds remained stable last week. Groundnut oilseeds closed steady at Rs 7,350-7,925 per quintal, Groundnut Oil Gujarat at Rs 17,000 per quintal and Groundnut Solvent Refined Oil closed at Rs 2,680-2,980 per tin.

No change in palm and palmolein oil also

There was no change in the prices of palm and palmolein oil due to importers selling it below cost. According to sources, importers keep selling the bank's letter of credit (LC) continuously to keep it circulating.

Last week, CPO oil remained stable at Rs 13,950 per quintal. Whereas Palmolein Delhi closed at Rs 15,850 per quintal and Palmolein Ex-Kandla oil closed at Rs 14,600 per quintal without any change.

Cottonseed oil weak despite low availability

According to sources, the availability of cottonseed is also less. Refined cottonseed oil is costlier than groundnut oil. Despite this, due to no increase in the price of groundnut oil, pressure remained on cottonseed oil.

Last week, the price of cottonseed oil fell by Rs 225 and closed at Rs 16,900 per quintal.