Weekly Review-Mustard

16-Nov-2024 07:24 PM

Significant fall in mustard prices due to weak demand from crushing mills


Weekly Review: Mustard (8-14 November 2024)

Market Overview:

The mustard market experienced a significant downturn during the week under review due to weak demand, both from crushing mills and exports, combined with a normal arrival of mustard in major producing states. This has led to a sharp fall in mustard prices, with declines ranging from Rs 100 to Rs 400 per quintal. The weakening demand for mustard oil, following the end of the festive season, also added downward pressure on prices.

Price Trends:

  • 42% Condition Mustard:

    • Delhi: Fell by Rs 100, trading at Rs 6450 per quintal.
    • Jaipur: Dropped by Rs 175, settling at Rs 6600-6625 per quintal.
    • Other States: Prices softened in major mustard-producing states like Gujarat, Rajasthan, Haryana, Madhya Pradesh, and Uttar Pradesh.
      • Hisar, Haryana: Prices increased by Rs 200, ranging from Rs 5800-6000 per quintal.
      • Alwar & Khairthal, Rajasthan: Prices fell by Rs 400 and Rs 300, respectively, with rates at Rs 6200 per quintal.
      • Hapur & Agra, Uttar Pradesh: Prices declined by Rs 150 to Rs 295, trading between Rs 6700-7275 per quintal.

    This marks a reversal after previous weeks, where prices had seen a sharp increase, indicating a correction in the market.

  • Mustard Oil:

    • Due to the fall in mustard prices, the price of mustard oil also declined, by Rs 40 to Rs 60 per 10 kg.
    • Delhi: Price of expeller mustard oil dropped by Rs 50 to Rs 1335 per 10 kg.
    • Bharatpur: Fell by Rs 60 to Rs 1360 per 10 kg.
    • Morena, Khairthal, Alwar: Prices dropped by Rs 50 each per 10 kg.
    • Hapur & Agra: Prices reduced by Rs 60 each per 10 kg.

    The softening of mustard oil prices is attributed to the declining demand post-festival season, contributing to the weakening pressure on the market.

Arrivals:

  • The daily arrival of mustard at the national level ranged between 1.60 lakh to 2.25 lakh bags (50 kg each).
  • The price of mustard DOC (de-oiled cake) fell by Rs 100 per ton, and the price of mustard cake saw a reduction of Rs 40 to Rs 60 per quintal.

Outlook:

  • Sowing Season: Mustard sowing has already begun, which could affect the availability of mustard in the coming weeks, potentially tightening supply and providing some support to prices in the medium term.
  • Demand Factors: The ongoing weak demand from crushing mills and the lackluster export performance, combined with post-festive season demand slowdown for mustard oil, could continue to keep prices under pressure in the short term.

This week's market performance suggests a softening trend, but any changes in export demand or sowing progress could alter the trajectory in the coming weeks.

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