Mandi review: Soybean oil prices record Rs 25 a kg more expensive than mustard
Generally, the price of soybean oil was around Rs 5 per kg below mustard, but during the weekend under review, the price of soybean oil is about Rs 25 more than mustard. Last week, the price of soybean DOC was running in the range of Rs 8,000-8,300 which has increased to Rs 9,200 in Kota and Rs 9,600 in Chhattisgarh during the weekend under review. Similarly, due to heavy demand for groundnut DOC, the prices of groundnut oil and oilseeds became strong enough during the weekend under review.
Mustard Kachhi Ghani improved by Rs 15
Last week, the price of mustard seed rose by Rs 50 to Rs 7,775-7,825 per quintal from Rs 7,725-7,775 per quintal last weekend. Mustard Dadri oil also rose by Rs 250 to Rs 15,550 per quintal. Sarson Pakki Ghani and Kachchi Ghani tins also closed at Rs 2,530-2,580 and Rs 2,615-2,725 per tin, showing an improvement of Rs 30 and Rs 15, respectively, during the weekend under review.
Soybean grain jumps by Rs 1,000
Soybean grain and loose prices closed higher by Rs 1,000 and Rs 925 respectively at Rs 10,025-10,050 and Rs 9,725-9,825 per quintal, respectively, on heavy local and export demand for Soybean Oilless Oil (DOC). Soyabean Delhi (Refined), Soyabean Indore and Soyabean Degum prices improved by Rs 100, Rs 200 and Rs 300 respectively to close at Rs 15,150, Rs 15,050 and Rs 13,750 per quintal, respectively, during the weekend on increased demand.
CPO closed at Rs 11,750 Chantil
Groundnut grains improved by Rs 400 to Rs 6,245-6,390, groundnut Gujarat improved by Rs 200 to Rs 14,500 per quintal in the weekend under review due to heavy local demand for groundnut DOC. While groundnut Solvent Refined improved by Rs 30 to Rs 2,235-2,365 per tin. In the reporting weekend, the price of crude palm oil (CPO) improved by Rs 350 to close at Rs 11,750 per quintal. Palmolein Delhi and Palmolein Kandla oil also improved by Rs 230 and Rs 100 to close at Rs 13,580 and Rs 12,400 per quintal, respectively, after opening of import of palmolein in the country.
The reason for the record rise in the price of oil and oilseeds
In the Delhi oil-oilseeds market, prices of almost all oilseeds, including mustard, soybean, closed last week showing gains due to heavy local and export demand for oil-free shells along with festive demand amid a bullish trend in overseas markets. This year the exports of DOC have increased by about 300 per cent over the previous year, thereby creating a shortfall of DOC. In view of heavy demand from DOC, the prices of mustard, soybean and groundnut oil-oilseeds closed with substantial correction during the weekend under review. Sources said that due to the shortage of soybean grain, there is a record rise in the prices of its oilseeds and oilseeds. It is noteworthy that the oil yield from soybean is about 18 percent, while the oil yield from mustard is 40-42 percent. Due to high demand for soybean, the price of mustard fell by Rs 25-26 a kg over the soyabean during the weekend under review, whereas the price of mustard is generally five-six rupees more than soyabean.
In overseas markets, soybean degum prices rose from $1,280 to $1,352 a tonne on a rise in the Chicago Exchange. Sources said that the cooperatives Hafed, Nafed and other entities had sold around 18-20 lakh tonnes of mustard during July to December last year as stock was accumulated with these entities due to purchase of goods from farmers, but in the current year. I don’t even have stock in these entities. Sources said that the prices of CPO and palmolein oil also closed with a substantial improvement in the reporting week due to the uptrend in Malaysia Exchange last week and ending the ban on import of palmolein. There is demand for pickle makers, festive demand and green vegetable season which is only going to increase further.
