Linseed Market Outlook: Promising Crop, Rising Prices
The linseed market in New Delhi has witnessed a promising crop this year, with production in Madhya Pradesh and Rajasthan soaring to one-and-a-half times that of the previous year. Despite the bountiful harvest, arrivals in the market have been meagre, causing prices to in the last two months. However, traders anticipate further price increases in mid-December, contingent on the upcoming sowing report.
The linseed production has increased by one and a half times in comparison to the previous year which has driven prices down. Nevertheless, the past two months have witnessed a steady price surge, bringing the current average price of linseed toĀ $0,73 per kg. As farmers grapple with the implications of abundant production, there are concerns that new sowing may witness a decline of up to 50 percent in November. Many farmers may choose alternative crops like wheat, garlic, and cumin to secure remunerative prices.
The sowing report, scheduled for release after December 20, will hold the key to the linseed market's trajectory. If sowing experiences a dip, prices may return to the average rangeĀ between December 20 and January 15. The current price of linseed in Madhya Pradesh's Java shop stands atĀ $0,61 per kg, with notable demand for crushing.
From March 1 to June 30, 2022, nationwide linseed arrivals dipped by 2.48 percent, amounting to 52,576.52 tonnes compared to the previous year's 53,911.93 tonnes. The shops of Madhya Pradesh reported a 9.71 percent decline in arrivals, from 43,355.62 tonnes to 39,144.57 tonnes during the same period. In contrast, Rajasthan's shops observed a notable increase of 62.56 percent in arrivals, surging from 7,195 tonnes to 11,697 tonnes. These trends indicate a complex interplay of supply and demand dynamics in the linseed market.
The linseed production has increased by one and a half times in comparison to the previous year which has driven prices down. Nevertheless, the past two months have witnessed a steady price surge, bringing the current average price of linseed toĀ $0,73 per kg. As farmers grapple with the implications of abundant production, there are concerns that new sowing may witness a decline of up to 50 percent in November. Many farmers may choose alternative crops like wheat, garlic, and cumin to secure remunerative prices.
The sowing report, scheduled for release after December 20, will hold the key to the linseed market's trajectory. If sowing experiences a dip, prices may return to the average rangeĀ between December 20 and January 15. The current price of linseed in Madhya Pradesh's Java shop stands atĀ $0,61 per kg, with notable demand for crushing.
From March 1 to June 30, 2022, nationwide linseed arrivals dipped by 2.48 percent, amounting to 52,576.52 tonnes compared to the previous year's 53,911.93 tonnes. The shops of Madhya Pradesh reported a 9.71 percent decline in arrivals, from 43,355.62 tonnes to 39,144.57 tonnes during the same period. In contrast, Rajasthan's shops observed a notable increase of 62.56 percent in arrivals, surging from 7,195 tonnes to 11,697 tonnes. These trends indicate a complex interplay of supply and demand dynamics in the linseed market.