Mustard Prices Rebound Against Increased Buying by Oil Mills

After three days of declines, mustard prices in the domestic market saw a rise on Wednesday as oil mills stepped up purchases at lower price levels. In Jaipur, the price of conditioned mustard increased to reach around $3,94 per kg. Daily arrivals of mustard held steady, with approximately 0.30 million sacks arriving in the market.

Global Edible Oil Price Surge and its Influence

Global edible oil prices showed significant gains, impacting market sentiment domestically. Malaysian palm oil rose by over 2.25%. While soybean oil prices also improved in Chicago, along with increased edible oil prices in Dalian. Experts suggest that this surge is driven by expectations of a tightening global palm oil supply due to rising demand and limited production. As a result, mustard oil prices in India also climbed for the second consecutive day, while mustard cake saw a slight increase. Mustard arrivals across producing states remained stable, with stockists and farmers holding mustard at the lower price levels.

Supply Constraints in Malaysia and Indonesia Impact Palm Oil Futures

Malaysian crude palm oil (CPO) futures hit a two-year high on Wednesday. Concerns of reduced production in Malaysia and Indonesia, the world’s top producers. The January delivery palm oil futures on the Bursa Malaysia Derivatives Exchange rose by 2.28% to close at approx. $0,94 per kg. Soybean oil futures on the Chicago Board of Trade rose slightly by 0.05%. While the Dalian Commodity Exchange saw increases of 2.47% in soy oil futures and 3.48% in palm oil futures. The Malaysian ringgit weakened by 0.51% against the U.S. dollar, making imports more attractive for international buyers. Concerns over palm oil production in Malaysia remain high, keeping global prices elevated. Together, Malaysia and Indonesia account for roughly 85% of the world’s palm oil production.

Mustard Oil and Cake Prices Rise as Domestic Demand Holds

In Jaipur, mustard oil prices rose on Wednesday. The price of Kachi Ghani mustard oil increased by about $0,02, reaching $1,55 per kg, while mustard expeller oil also rose to $1,54 per kg. Mustard cake prices in Jaipur climbed and now at $1,41 per kg. Across India, daily mustard arrivals remained steady at around 0.30 million bags. Rajasthan, India’s largest mustard-producing state, received approximately 0.15 million bags, while Madhya Pradesh had 35k bags, Uttar Pradesh saw 40k bags, Punjab and Haryana received 10k bags, Gujarat saw 15k bags, and other regions accounted for around 50k bags.

With consumption season approaching, domestic demand for mustard oil is expected to remain strong. However, price fluctuations in imported edible oils may influence further price movements in the local mustard market.

Conclusion:

With mustard prices rising on the back of stronger purchases by oil mills and stable supply levels, the market outlook remains positive. The recent increases in global edible oil prices, combined with steady demand for mustard oil, suggest that prices could remain firm in the coming months. However, the extent of price movements will likely depend on trends in international edible oil markets and the supply dynamics from major mustard-producing regions.





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