Palm oil price declines slightly, soybean stable
Highlights:
- Palm oil is being sold at Tk4,250 per maund in the wholesale market, decreasing by Tk200
- Per maund palm super oil is being sold at Tk4,500 for the last one month
- Soybean oil price has been stable for the past one month at Tk4,700
- Prices of all types of edible oils have been rising in the international market for the last 6-7 months
- Traders said price of palm oil is likely to increase in the domestic market from next week
- In the first nine months (July to March) of the current financial year, 6,52,521 metric tonnes of refined and crude palm oil were imported
- In the first nine months (July to March) of the current financial year, 4,33,600 metric tonnes soybean were imported
- Oil refiners association has announced increasing retail price of per liter of bottled soybean oil from Tk144 to Tk153
After a long time, palm oil prices have declined in the Khatunganj wholesale market.
In the last four to five days, the wholesale price of per maund (40.90 litres) of palm oil has decreased by Tk200. At present, palm oil is being sold at Tk4,250 per maund, which was Tk4,450 till the middle of last week.
According to traders, the price of palm oil decreased by Tk200 in the local market after the price of the edible oil recently decreased in the international market. However, the booking price of the product in the international market has gone up again. As a result, the price of the product is likely to go up in the domestic market also from next week.
Among the palm oils in the market, TK Group's Bay Fishing Palm Oil is currently being sold at Tk4,250 per maund, S Alam's at Tk4,240 per ounce and palm oil of Citigroup, Meghna Group and Bashundhara Group at Tk4,230 per maund, said traders.
Abdur Razzak, an edible oil trader and proprietor of M/S Ismail Traders, said the price of palm oil in the Khatunganj wholesale market has come down by Tk200 since the end of last week. Before that, the price of the product was Tk4,450 per maund till the middle of last week, the highest price recorded in the palm oil market.
Although the price of palm oil has decreased a bit, the price of palm super oil has remained stable. At present, per maund of palm super oil is being sold at Tk4,500. The price has remained unchanged for the last one month.
TK Group's palm super oil is currently being sold at Tk4,500 per maund, S Alam's at Tk4,490, and palm super oil of other groups (Meghna, Citi and Bashundhara) at Tk4,480.
Like palm super oil, the price of soybean oil has also been stagnant for the past one month. At present, it is being sold at Tk4,700 per maund in the wholesale market.
Biswajit Saha, executive director of Citigroup, an edible oil importer, told The Business Standard that the price of edible oil depends on international market booking prices. Prices of all types of edible oils have been rising in the international market for the last 6-7 months. As a result, the prices of edible oil have been rising in the domestic market also for a long time. In the international market, the price of palm oil in Malaysia fell slightly at the beginning of the current month. This decline reduced the price of the product in the domestic market.
"However, since last week, the price of the product has gone up again in the international market. This is likely to increase the price of the product in the domestic market," the official said.
According to importers and traders, the booking price of palm oil in the international market, especially in Malaysia, was 4,100 ringgit per tonne till the end of last month. The price dropped to 3,800 ringgit at the beginning of this month. As a result, the price of the product was reduced slightly in the domestic market. However, in the last two weeks, the price has increased again and now the booking price stands at 4,100 ringgit per tonne.
According to IndexMundi, palm oil prices in the international market has been increasing since September 2019. At the time, every tonne of palm oil was sold at 2,428 ringgit. After increasing several times, in February this year, per tonne price of palm oil reached 4,116 ringgit. Subsequently, the price of the product gradually decreased to 3,700 ringgit in April. However, at the beginning of this month, the price of the product went up to 4,400 ringgit, but in the middle of the month, the price of the product came down to 3,800 ringgit and now it has gone up again. Palm oil is currently being sold at 4,100 ringgit per tonne in Malaysia.
According to Chattogram Customs, 6,52,521 metric tonnes of refined and crude palm oil were imported through Chattogram Port in the first nine months (July to March) of the current financial year. In the corresponding period during the last fiscal year, palm oil imports were 10,90,246 tonnes. In the first nine months of the last financial year, 3,95,013 tonnes of refined and crude soybean were imported while 4,33,600 tonnes of soybean were imported at the same time of the current financial year.
Meanwhile, the Bangladesh Vegetable Oil Refiners and Banaspati Manufacturers Association, an organisation of oil refiners and marketeers, has announced an increase in the retail price per liter of bottled soybean oil from Tk144 to Tk153.
According to the new announcement, a five-litre bottle of soybean oil will be available at Tk728. Besides, non-packet soybean oil can be purchased at Tk129 per litre and palm super oil at Tk112 per litre. The price of palm oil has been reduced by one taka per litre. ***
