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New Delhi: A slight improvement was recorded in the prices of soybean oilseeds last week amid low arrivals in the domestic market. Due to increase in industrial demand, the prices of crude palm oil (CPO) and palmolein also strengthened. On the other hand, soybean oil prices declined due to importers selling below their costs. Cottonseed oil also became cheaper due to weak demand at higher prices. The prices of mustard, groundnut oil and oilseeds remained stable amid sluggish business.

According to market sources, the arrival of soybean in the markets is currently very less. Its arrival dropped to 40-45 thousand bags over the weekend, whereas the daily demand is around 2.5-3 lakh bags. Due to less arrivals and festive demand, soybean oilseed prices improved slightly compared to the previous weekend.

Importers selling below cost

Sources said that on the other hand, importers are continuously selling to keep their bank letters of credit (LC) current. It was told that to keep the LC afloat, they are forced to sell their deals below cost by about five percent.

For importers, the import cost of soybean degum oil is around Rs 125 per kg, while they are selling it at around Rs 118.50 per kg. According to sources, in a country where about 60 percent of the edible oil requirement is met by imports, importers selling edible oil below cost reflects the pressure on their economic condition.

Sources say that on one hand the government expresses its intention to save foreign exchange, but on the other hand perhaps not enough attention is being paid to the selling below the cost of importers.

Cottonseed oil fell by Rs 400

Cottonseed oil prices also declined last week due to weak demand at higher prices. Despite strong industrial demand, trading was hampered by high prices. Due to this, cottonseed oil fell by Rs 400 and closed at Rs 16,500 per quintal.

At the same time, the prices of these oils improved due to increasing industrial demand and cheaper palm oil compared to other edible oils like sunflower, groundnut and cottonseed.

Mustard and peanut prices stable

The prices of mustard and groundnut oil and oilseeds remained stable last week amidst sluggish business due to higher prices.

• Mustard seeds: Rs 8,300-8,350 per quintal
• Mustard oil Dadri: Rs 16,800 per quintal
• Mustard Pakki Ghani: Rs 2,735-2,835 per tin (15 kg)
• Mustard Kachchi Ghani: Rs 2,735-2,885 per tin (15 kg)

Prices of soybean grains and nuts increased

In the week under review, the wholesale prices of soybean grains and soybean loose improved by Rs 25-25 per quintal. Their prices closed at Rs 6,700-6,750 and Rs 6,550-6,650 per quintal respectively.

On the contrary, due to selling below the cost by importers, soybean oil in Delhi fell by Rs 150 to Rs 15,600 per quintal, soybean Indore oil fell by Rs 150 to Rs 15,400 and soybean Degum oil fell by Rs 200 to Rs 11,850 per quintal.

No change in groundnut oil and oilseeds

Last week, the price of groundnut oilseed remained stable at Rs 7,350-7,925 per quintal, groundnut oil Gujarat at Rs 17,000 per quintal and groundnut solvent refined oil at Rs 2,680-2,980 per tin.

CPO and palmolein prices strong

In the week under review, CPO oil improved by Rs 150 and closed at Rs 14,100 per quintal. Similarly, Palmolein Delhi increased by Rs 150 to Rs 16,000 per quintal and Palmolein X Kandla improved by Rs 100 to close at Rs 14,700 per quintal.

In this way, last week, different trends were seen in the edible oil market according to the commodity. Lower arrivals supported soybean oilseeds, while selling below importers' costs put pressure on soybean oil. Demand for cottonseed oil remained weak due to high prices, while CPO and palmolein strengthened due to industrial demand.