In the country’s oil-oilseeds market, there was a sharp jump in the prices of soybean oil-oilseeds as well as crude palm oil (CPO), palm olein, and cottonseed oil on Saturday. The main reason for this was the cooperative institution NAFED stopping the sale of soybeans till the next sowing and the farmers reducing the arrival of their oilseeds amid increasing demand.
At the same time, the prices of mustard and groundnut oil-oilseeds remained stable at the previous level amid sluggish business. This rise can have a direct impact on your kitchen budget in the coming days. So let’s know the reasons behind this rise and what can happen next.
Farmers stopped the sale of soybeans
According to market sources, NAFED has banned the sale of soybeans till its next sowing. Due to this, soybean farmers have hope of getting good prices for soybeans, whose spot price was running much below its minimum support price (MSP).
Farmers have also reduced the arrival in the hope of good prices. On the other hand, the demand for the upcoming festivals and wedding season has started increasing gradually. In this situation, the prices of soybean oil and oilseeds have improved. This is good news for farmers, but consumers may have to bear the brunt of it.
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Expensive crude palm oil in Malaysia
Market experts say that the prices of crude palm oil (Crude Palm Oil – CPO) and palm olein are being quoted high in Malaysia, but in reality, it is difficult to find a buyer at this price. Due to high prices, palm oil and palm oil have also seen improvement.
The availability of cottonseed and its arrival in the markets is weak, due to which the prices of cottonseed oil have also improved. There is a possibility of a further increase in the prices of these oils due to the boom in international markets and a possible increase in domestic demand.
Prices may increase further
Sources said that the prices of mustard and groundnut oil-oilseeds remained stable at the previous level amid sluggish trading due to Annual Accounting Closure. The direction of trading of these oils will be decided in the next few days.
However, the demand in the market remains, and given the Navratri festival and wedding season, the demand is expected to increase further. At present, the prices of mustard and groundnut oil-oilseeds are stable, but they may also see a rise in the coming days.
Kapasia oil benefits from the high prices of sunflower and palmolein
Market experts also said that at present the prices of sunflower and palm olein, which are seen as an alternative to cottonseed oil, are quite high. Due to these high prices, there are fewer buyers of sunflower and palm olein. Cottonseed oil has benefited from this situation and its prices have also improved. If the prices of sunflower and palm olein remain high, then the prices of cottonseed oil may increase further.
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