Peanut oil rises: Palm oil rises in world market as India reduces duty

(Commercial Representative) Mumbai, Ta. 27 November 2020, Friday

In the Mumbai oil and bean market, the price of cingulum oil rose today on the back of manufacturing stocks. At present, palm oil traded at about 150-200 tonnes in hawala-resale, while refineries' direct deliveries for December delivery traded at around 400-500 tonnes, market sources said.

Palm oil prices rose in Malaysia and Indonesia today as import duties on India eased. In Malaysia, palm oil futures rose by 115 points today, while product prices rose by ૨ 50 to ૨૫ 6 a barrel, and crude palm oil CPO prices rose by ૫ 15 in Indonesia.

Meanwhile, palm oil was trading at Rs 5 per 10 kg in the Mumbai spot market today while crude palm oil CPO Kandla was quoted at Rs 4. In the futures market, CPO futures were trading at Rs 4.50 in the evening after hitting a low of Rs 6, while soyoil futures recovered after the shock and rose to Rs 105 in the evening, sources in the futures market said.

Meanwhile, in the Mumbai spot market today, the price of cingulum oil rose by 10 kg to Rs 1,210 while the price of cottonseed oil fell to Rs 105. Cingulum oil prices rose by Rs 150 to Rs 150 and Rs 1,150 to Rs 200 per 15 kg, while cotton washed was quoted at Rs 20 per kg.

In the Mumbai market today, soyoil prices rose to Rs 1,050 for digam and Rs 1,060 for refined. While the price of sunflower was quoted at Rs 150 and refined at Rs 150. Mustard was priced at Rs 1,150. This time in Gujarat, there was talk of increasing mustard cultivation by farmers. In the current Ravi season in Gujarat, there were indications that the cultivation of mustard has increased to about 1 lakh 3 thousand hectares so far.

Market experts were hoping that this figure would be surpassed this year, given that such planting in Gujarat is about 1 lakh 3 thousand hectares during the entire Ravi season.

Meanwhile, castor and spot castor prices were under pressure in the Mumbai market today, while castor December futures were up by Rs 5 this evening to Rs 20. In the Mumbai flour market, the price of groundnut and cottonseed meal fell by Rs 200 to Rs 300 per tonne today while that of sunflower flour went up by Rs 200 to Rs 300. The others, however, were quiet.

After the Indian government reduced the import duty on crude palm oil, it was rumored in the market today that the import duty on soyoil and sunflower oil may also be reduced. However, market insiders said that this is unlikely to happen.

Meanwhile, there were rumors in the world market today that the Malaysian government may continue duty-free export of palm oil till March 2021. Palm oil exports from Malaysia fell in November. In Russia and Ukraine, there is talk of a new crop of sunflowers.