Mustard Prices Keep Dropping as Buyers Stay Away

Mustard prices continued their slide on Monday, with weak oil mill demand pushing rates lower. In Jaipur, conditioned mustard prices declined again as 200,000 bags of fresh arrivals hit the market, up from 140,000 bags the previous day. Traders say that while mustard sowing dipped this season, favorable weather has helped the crop develop well.

Edible Oil Prices Are All Over the Place

The global edible oil market remains unpredictable. Palm oil prices in Malaysia slipped in the evening session, but China’s Dalian Exchange saw a rise in soy oil and palm oil futures. Meanwhile, soy oil prices in Chicago fell, making it harder to predict short-term trends.

With mustard oil prices in India linked to global edible oil markets, traders are keeping a close watch on overseas movements.

More Mustard Arriving, But Who’s Buying?

Daily mustard arrivals climbed to 200,000 bags, up from 140,000 bags the day before. Here’s where the fresh supply is coming from:

• Rajasthan – 95,000 bags
• Madhya Pradesh – 20,000 bags
• Uttar Pradesh – 25,000 bags
• Punjab & Haryana – 10,000 bags
• Gujarat – 10,000 bags
• Other states – 40,000 bags

With the new mustard crop expected to arrive in February, traders worry that increasing supply might push prices even lower.

Mustard Oil Gets Cheaper as Demand Remains Weak

Prices for mustard oil continued to decline in Jaipur on Monday. Raw Ghani mustard oil now trades at USD 1,55 per kg, while mustard expeller oil has slipped to USD 1,54 per kg.

Mustard cake prices followed suit, dropping to USD 0,26 per kg as demand from oil mills remains subdued.

Palm Oil Stocks Are Running Low, But Buyers Aren’t Rushing In

According to Oil World, global palm oil stocks at the start of January were 2,1 million tonnes lower than a year ago. Supply is expected to shrink further by 1,6 million tonnes this quarter.

Despite this, high prices are keeping palm oil demand weak, as buyers look for cheaper alternatives in the edible oil market.

Conclusion: Mustard Prices Aren’t Recovering Anytime Soon

With sluggish demand from oil mills and increasing arrivals, mustard prices are likely to stay weak in the short term. Domestic consumption should hold steady, but global edible oil markets will continue influencing price movements. Traders should prepare for further market shifts as the new crop enters the supply chain in February.





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