Weekly Review - Mustard
04-Jan-2025 07:44 PM
Significant fall in mustard prices due to weak demand from crushing mills
The weekly review of mustard prices highlights a significant decline due to weak demand from crushing mills, influenced by the broader sluggishness in the oilseeds-oil market. Despite a lower acreage of mustard for the Rabi season compared to last year, there has been no positive market response. Here's a summary of the key points:
Price Declines:
- Delhi & Jaipur: The price of 42% condition mustard fell by ₹150 to ₹6,550 per quintal in Delhi, and by ₹125 to ₹6,425 per quintal in Jaipur.
- Haryana: A decrease of ₹100-150 per quintal in the price of normal quality mustard.
- Madhya Pradesh: Prices in key markets like Morena, Porsa, and Gwalior fell by ₹150 to ₹250 per quintal.
- Uttar Pradesh: Prices in Hapur and Agra markets dropped by ₹75 to ₹200 per quintal.
- Rajasthan: In major producing regions like Bharatpur, Alwar, and Khairthal, prices softened by ₹100-200 per quintal, though markets in Kota and Ganganagar remained stable.
Mustard Oil:
- Price Reduction: The fall in mustard prices also caused mustard oil prices to decrease by ₹2 to ₹4 per kg.
- Expeller Oil: Prices for expeller mustard oil fell by ₹35 to ₹1,305 per 10 kg in Delhi and by ₹40 in Morena. Similar price drops of ₹20-30 were observed in markets like Hapur, Agra, Kolkata, and Rajasthan.
Market Dynamics:
- Arrivals: The daily arrival of mustard has dropped to below 2 lakh sacks. While producers have limited stock, government agencies hold over 10 lakh tonnes, with efforts underway to increase sales.
- New Crop: Harvesting of the new mustard crop is expected to begin next month, which could exert further pressure on prices.
Mustard DOC:
- Weak Demand: The demand for mustard DOC (De-oiled Cake) remained very weak, leading to a substantial price drop of up to ₹1,500 per ton.
This indicates a challenging period for mustard prices, driven by low demand, market stagnation, and limited positive market sentiment despite the lower acreage.