Weak Demand from Oil Mills Affects Mustard Prices

Due to weak purchases from oil mills, mustard prices softened for the second consecutive day in the domestic market on Saturday. In Jaipur, the price of conditioned mustard fell by $0,03 bringing it to $0,73 per kg. During this period, the daily arrival of mustard decreased to only 0.40 million bags.

In the foreign market, there was a downward trend in the prices of edible oils at the end of the current week. According to traders, there is no possibility of a significant increase in the prices of edible oils in the world market, which means there is no hope of a substantial rise in the prices of mustard and its oil in the domestic market as well.

Mustard Oil Prices Weaken While Cake Prices Stabilize

Mustard oil prices weakened for the second day in the domestic market, while the prices of mustard cake remained stable. On Saturday, the price of Kachi Ghani mustard oil fell by $0,0036 and now at $1,40 per kg, while mustard expeller oil also weakened by $0,0036, now at $1,39 per kg. However, the price of mustard cake stabilized at $0,32 per kg in Jaipur.

The decline in mustard prices for the second consecutive day was accompanied by a decrease in daily arrivals. According to traders, the outstanding stock of mustard is high in the producing states, but traders and farmers are reluctant to sell at low prices. The high heat has reduced the domestic demand for mustard oil compared to earlier times. However, the rise or fall in its prices will largely depend on the price of imported edible oils.

Regional Arrival Statistics

The daily arrival of mustard in mandis across the country decreased to only 0.40 million bags, compared to 0.50 million bags on the previous trading day. Out of the total arrivals, 0.25 million bags of mustard arrived in the mandis of Rajasthan, the major producing state. Other arrivals included 25,000 bags in Madhya Pradesh, 35,000 bags in Uttar Pradesh, 20,000 bags in Punjab and Haryana, 15,000 bags in Gujarat, and 55,000 bags in other states.

Traders noted that despite the high outstanding stock of mustard in producing states, the reluctance of traders and farmers to sell at low prices has contributed to the current market dynamics. The market's behavior continues to be influenced by both domestic demand fluctuations and international edible oil price trends.

Mustard prices in the domestic market are experiencing a downturn due to weak demand from oil mills and high stocks in producing states. The interplay between domestic demand, international edible oil prices, and regional production dynamics will continue to shape the market in the coming days.