The prices of mustard, groundnut and soybean oilseeds fell in the country's oil-oilseeds market on Monday amidst the breaking of the price of cottonseed cake in futures trading . Due to this, while the prices of groundnut oil, soybean oil and cottonseed oil registered a strong improvement, the prices of mustard oil closed at the previous level. Amid no buyers of palm and palmolein oil, which were already priced high, the prices of both these oils also closed at the previous level. The Chicago exchange remained closed today, whereas there was a slight improvement in the Malaysia exchange. Market sources said that speculators broke the price of cottonseed cake in futures trading today and brought it to the price of three-four years ago.

Do farmers benefit from futures trading?

It is noteworthy that cotton produces cottonseed and cottonseed seed and while 10 percent edible oil is obtained from the crushing of cottonseed, about 90 percent cottonseed cake is produced, which has an important contribution in meeting the requirement of cake in the country. Breaking the price of this cake also weakens the prices of the rest of the cake and it affects the prices of related edible oils. Sources said that the Cotton Corporation of India (CCI) had started the purchase of cottonseed and the sale of cottonseed seed (oilseed) from November 11. CCI reduced this price to Rs 3,000 per quintal in December 2024. On the other hand, the cottonseed cake, which was priced at Rs 3,800 per quintal in futures trading, was gradually reduced by speculators to Rs 2,700 per quintal. He said that after that CCI increased the price of cottonseed by Rs 500-600 per quintal but there was no significant impact on the price of cottonseed cake in futures trading. That is, the price of cake which was earlier Rs 2,700 was increased only marginally to Rs 2,766 per quintal. The real intention of the speculators may be to break the price of futures trading and loot the produce of the farmers at a cheap price. Now it is necessary to understand whether the farmers or the oil industry benefit from this futures trading? Was it allegedly created for 'hedging' and real price discovery or for speculation? The real character of futures trading can be understood from this entire matter.

Farmers feel cheated

Sources said that the futures market has only 45,000 tonnes of cottonseed cake stock but deals of 60,000 tonnes have been done in the futures market. On the other hand, in the futures market with very less stock, deliberately breaking the prices at the time of harvest spoils the business sentiment of the entire oilseed industry, due to which the farmers feel cheated. He said that due to the fall in the price of cottonseed cake, the price of mustard cake fell marginally and due to this reason the price of mustard oil remained at the previous level. Due to the same reason, the price of groundnut and soybean oilseeds fell and due to compensating the loss with oil, the price of groundnut and soybean oil showed improvement.

Soybean is being sold 15% below MSP

Soybean is still being sold at a price of about 15 percent below the minimum support price (MSP). Imported soybean degum oil, which was earlier being sold at Rs 5 per kg below the cost, is being sold today at Rs 3 per kg below the cost, due to which the price of this oil is showing improvement. Sources said that the price of cottonseed oil improved amid reduced arrivals and falling prices of oil cake. Due to low arrivals and no purchase of palm and palmolein, which were already at high prices, the prices of CPO and palmolein remained at the previous level. 

The prices of oilseeds were as follows:

• Mustard oilseeds - Rs 6,500-6,550 per quintal.
• Groundnut - Rs 5,900-6,225 per quintal. 
• Groundnut Oil Mill Delivery (Gujarat) - Rs 14,100 per quintal.
• Groundnut Refined Oil - Rs 2,140-2,440 per tin.
• Mustard oil Dadri – Rs 13,550 per quintal.
• Mustard Pakki Ghani - Rs 2,300-2,400 per tin.
• Mustard Crude Oil - Rs 2,300-2,425 per tin.
• Sesame Oil Mill Delivery - Rs 18,900-21,000 per quintal.
• Soybean oil mill delivery Delhi - Rs 13,600 per quintal.
• Soybean mill delivery Indore - Rs 13,325 per quintal.
• Soybean oil Degum, Kandla - Rs 9,600 per quintal.
• CPO ex-Kandla – Rs 12,600 per quintal.
• Cottonseed Mill Delivery (Haryana) - Rs 12,400 per quintal.
• Palmolein RBD, Delhi – Rs 14,050 per quintal.
• Palmolein ex-Kandla – Rs 13,100 (without GST) per quintal.
• Soybean grain - Rs 4,350-4,400 per quintal.
• Soybean loose - Rs 4,050-4,150 per quintal.