Oil Price: On Wednesday, all oilseed prices dropped in the major markets nationwide due to the ongoing decrease in the Malaysia Exchange. Throughout this timeframe, the costs of mustard, groundnut and soybean oil-oilseeds, crude palm oil (CPO), palmolein, and cottonseed oil ended with a decrease. Yet, in spite of this decrease, the retail prices of edible oils remained unaffected. Market sources indicated that the ongoing drop in edible oils on the Malaysia Exchange impacted the prices of all edible oilseeds, causing wholesale prices of edible oils to decrease. However, this decrease in the retail market had no impact.
Decrease of 1-1.5 percent in the Malaysia Exchange
The elevated maximum retail price (MRP) of edible oils contributes to widespread inflation in the retail sector. There is a decrease of 1-1.5 percent in the Malaysia Exchange. While there are variations in the Chicago Exchange. According to sources, the prices of palm and palmolein fluctuate, occasionally increasing and at other times decreasing. However, the cost of these oils is around 2-7 percent greater than that of edible oils such as soybean, groundnut, and mustard, making it challenging to use palm and palmolein globally at these elevated prices.
As a result of this inflation, Malaysia’s exports have also fallen. He mentioned that the cotton production last year was approximately 325 lakh bales, including the existing stock. Nevertheless, cotton was utilized until the month of August. This year, the cotton output stands at approximately 299.5 lakh bales, while the consumption has risen by roughly 10 percent as well. Considering this low output, the Cotton Corporation of India (CCI) ought not to sell cottonseed at reduced prices, as this is impacting the prices of other oilseeds.
He mentioned that this season, the cotton from Gujarat and Maharashtra is of superior quality and there is also a lack of moisture. Because of this low selling price, traders and speculators are purchasing cottonseed at reduced rates from CCI and accumulating it. In the future, the need for cottonseed will rise, and we must get ready for that circumstance starting now. As a result of the failure of Malaysia Exchange, the cost of mustard oil and oilseeds declined as well. While there was a drop in soybean oil and oilseeds caused by low demand. As a result of CCI selling cottonseed at reduced prices, the cost of cottonseed also declined. Peanut oil and oilseeds decreased because of low export demand. CPO and palmolein prices decreased because of the crash on the Malaysia Exchange.