Here's why India edible oil prices have hit multi-year highs
Many of the agri commodity prices have run-up and within this the maximum of gains have come in for edible oil space, where you have the Indian mustard prices trading at an all-time highs. The Indian soybean prices are trading at 5 years high as well. There have been concern about crop in the Indian market and in the international markets. We also are looking at festival demand coming in and a strong buying and all of that has been supportive.
Many of the agri commodity prices have run-up and within this the maximum of gains have come in for edible oil space, where you have the Indian mustard prices trading at an all-time highs. The Indian soybean prices are trading at 5 years high as well. There have been concern about crop in the Indian market and in the international markets. We also are looking at festival demand coming in and a strong buying and all of that has been supportive.
Sandeep Bajoria, CEO of Sunvin Group said, “The palm oil which is consumed mainly in hotels, restaurant, catering and all is still suffering to some extent. But soybean oil and mustard oil which are consumed more in the house are having great demand in this corona times.”
He said, “If you compare with the last year, the prices are up by 15-20 percent in everything and in lockdown time people thought prices will be sideways, or nothing much in action, but the weather has changed everything world over and in India and prices are trading at very high level.”
Talking about international demand Bajoria said, “China has been stocking for food security purposes that has become a very bullish factor in the world, plus Chinese funds were investing in palms and US funds were investing in soybean, so they are very active that is the reason the market has pulled up very much.”
Lastly he said, “So, factors like climate, factors like China buying, factor like fund the activity these are the main three factors which we can attribute to the upside in the market.”
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