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Informist, Monday, Nov. 11, 2024

By Anjali Lavania

MUMBAI – Mustard and soybean prices fell Monday at Jaipur in Rajasthan and at Indore in Madhya Pradesh, respectively, traders said. Groundnut prices were steady in key markets of Gujarat, they added.

MUSTARD prices in Jaipur were down by INR 125 at INR 6,700-6,725 per 100 kilograms from Saturday. Arrivals increased in Rajasthan by 25,000 bags to 125,000 bags (1 bag = 50 kg). Similarly, across India, arrivals increased by 55,000 bags to 215,000 bags, according to Marudhar Trading Agency.

This week started with a temporary fall in prices which might not continue in the medium term, said Mahesh Sameriya, a Rajasthan-based trader. "In the medium run, the positive trend is expected due to the start of the wedding season," Sameriya added. Mustard sowing is almost complete in most of the states, he added. New arrivals will only hit the markets during Mar-Apr, he added. In Kota, Rajasthan, mustard prices were steady at INR 6,200 per 100 kg, with arrivals falling by 570 bags to 4,000 bags, Sameriya said. 

SOYBEAN prices in Indore were down by INR 100 at INR 4,100-4,400 per 100 kg, said Mukesh Mangal, a local trader. Arrivals in Indore fell by 500 bags to 2,500 bags (1 bag = 90 kg), he added. Soybean prices in Kota, Rajsthan were up by INR 30 to INR 4,570 per 100 kg with arrivals remaining unchanged to 50,000 bags, Sameriya said. 

The government has started purchases in some mandis of the state, like in Vidisha, Ratlam, Mandsaur, Neemuch and Dhar, said Narendar Porwal, another trader from the state. The government is purchasing only those soybeans which have moisture below 10%, he added. The arrivals were of poor quality and were mostly moisture-laden, Porwal added.

"In the short term, soybean prices may increase as farmers are holding stocks in anticipation of a rise in prices in the future due to government purchases in the state," Porwal said. Also, due to expectations of a rise in palm oil prices globally, soybean prices may increase in the long run on the back of high demand, he said. 

The palm oil sector has been struggling with low output, largely due to ageing trees in top producers, Dow Jones quoted AmInvestment Bank as saying in a research note. After around 25 years of age, the palm oil fruit yield starts declining, making the tree uneconomical. 

"The Business Monitor International, a Fitch Solutions company, has made an upward revision to its price forecast for Bursa Malaysia-listed third-month crude palm oil futures contracts in 2024 and 2025, from 3,850 ringgits per tonne to 4,050 ringgits per tonne and from 3,650 ringgits per tonne to 3,900 ringgits per tonne, respectively," said a report in The Business Today. 

GROUNDNUT prices at Gondal and Saurashtra in Gujarat have been steady since Friday at INR 5,100-6,900 per 100 kg, said Ashok Virvani, a Gujarat-based trader. Rain-damaged arrivals are approaching the markets currently, Virvani said. Poor export demand is also putting pressure on groundnut prices, he said. In 2024-25, groundnut production was at a record 10.4 million tonnes, up 19.5% from last year, according to the farm ministry.

End

Edited by Akul Nishant Akhoury

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