Pune: Cooking oil prices rose by up to 5% in wholesale markets Monday after soyabean oil futures in Chicago and palm oil contracts in Bursa Malaysia and Indonesia rallied, tracking a spike in crude oil.
Diversion of soyabean and palm oil for biodiesel increases when crude oil prices go up. The climb in crude oil prices amid the Middle East conflict is boosting demand for soyabean and palm oils as biodiesel feedstock, tightening supplies for food use.
Increased uptake was seen even in a typically slower season, and dry fruit prices like dates and almonds also climbed due to Middle East shipping disruptions. Retail prices are expected to follow the wholesale trend in the coming weeks.
