RBD Palmolein is the oil that is extracted from the crushed palm fruit and refined, bleached and deodorized. Numerous countries use RBD palmolein oil for cooking. RBD palm olein is an important raw material in the production of soap, washing powder, candles, hygiene products and personal care items.
The oil that is obtained from the fresh fruits of palm trees is classified into several commercial variants- Crude Palmolein, crude palm oil, RBD Palmolein, RBD Palm oil, and Palm Kernel Oil.
RBD Palmolein contracts are available 12 months of the year in MCX. The contracts are three months long each. The trading period is Mondays through to Fridays, from 9.oo am to 9.oo pm. The trading unit for RBD palmolein oil is ten metric ton. The RBD palm olein price is INR 620 per 10 kgs; however, prices keep fluctuating, so always check the current price before investing.
RBD Palmolein contains vitamins D and E and is free of cholesterol. It is resistant to oxidation, has a balanced and nutritious composition. RBD Palmolein is a popular choice as frying oil for various snacks and fast food industries like instant noodles, doughnuts and potato chips. It is also used extensively for cooking by households and as salad oil. It is a raw ingredient in the production of margarine and shortening.
The trade of palm oil is spread across the world. However, its production is dominated by a few nations only. Palm oil is exported as a major vegetable oil in the world. Indonesia and Malaysia together produce 87% of the world’s palm oil and are also the largest exporters of palm oil and its products. Other producers are Thailand, Nigeria and Columbia.
China, UE and India are the largest consumers of palm oil. The competitive price of this oil is a major contributor to its increased consumption. India imports crude palm oil from Indonesia while it gets RBD palmolein from Malaysia. The domestic production of palm oil in India is minuscule; hence, we depend heavily on the import of RBD palm oil to fulfill our daily requirements. This makes it an excellent contract to invest in since RBD palmolein price generally tends to be favourable.
Factors Influencing Prices
Factors that influence RBD palmolein prices are:
- The production levels of oilseeds at domestic and global levels
- The supply and demand rates of competing oils
- Fluctuating currency values of exporting countries
- The export-import policies of the government
- The production season of palm oil
- The prices of crude palm oil due to its use in the production of biodiesel
- Oilseed scenario in the domestic sectors
- Government policies regarding the production of oilseeds in importing countries
The reasons to invest in RBD palm oil are numerous. RBD palm olein provides security against insecurities of inflation, prospects of demand growth, and a chance to diversify one’s portfolio. During times of inflation, the price of food items almost invariably rise. Since India is a major consumer of RBD palmolein, you are certain to make profits during such periods. There is also a shortage of supply of palm fruits, which are used to make RBD palm olein and other oils, which might also affect the RBD palmolein price. Investing in RBD palmolein oil is also an interesting way to diversify your portfolio if you are looking to make a shift from stocks and bonds.