Imported edible oils broke behind the world market

(Commercial Representative) Mumbai, Ta. 24 November 2020, Tuesday

In the Mumbai oil and bean market, imported palm oil and soyoil prices fell sharply today, and as the spot market plummeted, so did the futures market, especially the crude palm oil CPO futures market, which saw a bearish circuit today, market sources said. World market news was showing a sharp softening in edible oils.

Meanwhile, domestic prices of cottonseed oil and mustard also declined today. New demand was also sluggish in today's declining market in the Mumbai spot market and imported palm oil traded at barely 80 to 100 tonnes in hawala-resale. In the world market, palm oil futures fell by 30 to 40 points in Malaysia today and there were reports of a fall in the price of palm products by ૫ 5 to ૭ 2.50.

In the Mumbai spot market, the price of 10 kg of imported palm oil was quoted at Rs 20 today, while crude palm oil CPO Kandla was quoted at Rs 310. Meanwhile, in the futures market, CPO futures fell by Rs 8 to Rs 8.30 today and were trading at Rs 201 in the evening. Soyoil futures fell by Rs 4.50 in the evening trade to Rs 105.50. CPO futures were trading at Rs 4.50 minus in the evening.

In the Mumbai spot market, the prices of 10 kg of soybean oil fell to Rs 1,050 for digam and Rs 105 for refined, while cottonseed oil fell to Rs 104 and mustard for Rs 150. Cingulum oil prices were quiet at Rs 1,200. On the other hand, the price of sunflower was Rs 120 and that of refined was Rs 150.

Prices of cotton washed were quoted at Rs 70 to Rs 8 today, down from Rs 1,000, while cingulum oil prices were quoted at Rs 19 and Rs 1,150 to Rs 4,150 per 15 kg. Meanwhile, in the Mumbai spot market, castor oil prices fell by Rs 5 to Rs 4 to Rs 5 and spot castor prices fell by Rs 5 to Rs 5 per kg.

It was reported that the prices of castor were quoted by the producers at Rs 20 to Rs 610 per quintal. The price of sunflower meal went up by Rs 200 while other meal prices were fluctuating narrowly.

According to world market news, total palm oil exports from Malaysia are expected to fall by about 15 to 20 per cent in the first three days of November. Despite the rise in crude oil prices in the world market today, players were surprised by the fall in edible oil prices.

Soyoil prices in the US agricultural markets fell 11 points overnight, after which the projection today saw news of prices falling by 41 to 4 points. In the overnight trade, soybean prices rose by 108 points, soybean oil by two points and cotton by 12 points. In today's projection, various agricultural commodities were trading in minus.

According to reports from China, many such Chinese importers are now canceling such standing deals after Chinese importers recently made large deals for soybean imports from the US.

Soybean prices have risen to a four-and-a-half-year high in the world market and Chinese importers are under pressure to cancel such import deals under the pressure of crushing margins of Chinese importers.