Crude palm oil prices, which hit a record high of Malaysian ringgit 7,268 (₹1,30,824) a tonne on March 9, have decreased by half of it’s high price in four months on the back of changing oil market dynamics. Indonesia, the major producer, and exporter, lifted its export ban within three weeks of imposing it in April this year, easing supply concerns from the country.
Recessionary fears and a continued rout in commodities have also reduced the appeal of oils, especially palm and soyabean oil. Rising production and ending stocks, coupled with lower tariffs, have also pulled prices down. Malaysia’s palm oil production hit a sevenmonth high of 1.55 million tonnes in June, against 1.45 mt in May, an increase of 6.20%.
Moreover, sunflower oil supplies from Ukraine were not hit as expected, even as the Ukraine-Russia war continued. CPO prices on the Bursa Malaysia Exchange are currently trading at 3,823 ringgit (₹68,814) a tonne, a 7 percent loss from the previous day, and are at their lowest level in 11 months, said Origo e-Mandi Research.
India’s oil imports between last November and May were up at 7.54 mt against 7.48 mt reported in the same period in the past oil year. As of June 1, edible oil stocks in the pipeline were at 1.77 mt, while edible oil stocks in ports were at 0.48 mt, similar to that on May 1.