Mustard Prices on a Downward Trend: Weak Demand and Strong Sowing Conditions Keep Market in Check
Last week, mustard prices in the markets dropped by ₹100-125, while at Soloni plants, the price drop was as much as ₹200. This decline in mustard prices proves that the report we provided was absolutely accurate, as we had predicted this trend. On Monday, the price of mustard at the Soloni plant opened at ₹7925, and by Saturday evening, it closed at ₹7725. Similarly, in Bharatpur, the price fell from ₹6931 to ₹6802, in Delhi from ₹7125 to ₹6900, and in Charkhi Dadri, it dropped from ₹7100 to ₹6950 per quintal. However, the prices remained stable at Goyal Kota Agra BP and Sharda plants. The strength of mustard cake and the weakening of the rupee have provided support to the market. This week, there has been some weakness in the demand for mustard cake, and the buying activity from oil mills has been limited. The mustard arrival has remained around 2.40 lakh bags, so there is no supply-side pressure. The weakness in international markets for palm oil and soybean oil has had a clear impact on domestic mustard as well. Mustard oil prices have dropped by ₹40 this week, and despite the wedding season and cold weather, the demand has not met expectations. In Jaipur, the price of cold-pressed oil dropped ₹40 to ₹1421, while in Delhi, it fell to ₹1420, and in Bharatpur, it went down to ₹1430 per 10 kg. However, the spread between mustard oil and soybean oil has narrowed considerably, so there is limited potential for a significant fall in oil prices going forward. There are also no strong signals in mustard cake, as the availability of alternative cakes is good, and demand from the animal feed sector remains sluggish. In Jaipur, mustard cake was priced at ₹2760, in Alwar at ₹2775, and in Bharatpur at ₹2850 per quintal. On the sowing front, mustard has been sown in about 79.88 lakh hectares across the country, which is approximately 4.5% more than last year. The weather conditions are also favorable for the crop's growth, so there is little room for a major price increase. Overall, there doesn't seem to be any solid reason for a rise in mustard prices at the moment, and in the coming days, the mustard market could fall by another ₹100-150, but this decline will likely be gradual, with occasional periods of stability.