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Informist, Wednesday, Dec. 11, 2024

By Anjali Lavania

MUMBAI – Spot prices of mustard fell in Jaipur while soybean prices were steady in Indore, traders said. Groundnut prices were also steady in Gondal, they added.

MUSTARD seed prices fell by INR 25 to INR 6,525-6,550 per 100 kg in Jaipur, Rajasthan. Arrivals in Rajasthan were down by 5,000 bags to 85,000 bags (1 bag = 50 kg). Arrivals across the country were also reduced by 10,000 bags to 175,000 bags, according to Marudhar Trading Agency.

"Mustard prices are expected to remain in the range of INR 6,550-6,575 per 100 kg in the near term," said a trader who does not want to be named. It is expected that mustard prices may not rise beyond this level owing to selling of excess stock by the government till now, he added. Market sentiment is expected to be bearish in the medium term due to the huge mustard seed sales by government agencies, weak rapeseed meal exports, higher imports of other edible oils, and sluggish demand, he added. 

Government agencies have sold around 1.3 million tonnes of mustard in the market so far this season, compared with 300,000 tonnes in the same period last year, which has increased supply and exerted downward pressure on prices, according to Indrajit Paul, head of research at Agrocorp International.

SOYBEAN prices in Indore, Madhya Pradesh, were steady at INR 3,900-4,300 per 100 kg, said Shailendra Soni, a local trader. Arrivals were up by 2,400 bags to 4,000 bags (1 bag = 90 kg), he said. 

"Soybean prices in the near term will either fall or remain steady due to poor export demand for Indian soymeal in the global market," Narendra Porwal, another trader from the state, said. 

"Domestic demand for soymeal has declined, with the poultry industry shifting a significant portion of demand to distiller's dried grains with solubles, which is more cost-effective, thereby putting additional pressure on soybean prices," Paul said.

Distiller's dried grains with solubles consist of undigested grain components resulting from grain ethanol fermentation. It is used as a feed ingredient substitute in the feed industry due to its high nutritional content and low production cost.

Soymeal is a by-product of the extraction of soybean oil and is primarily used as poultry and livestock feed. Indian soymeal is non-genetically modified and considered rich in protein.

GROUNDNUT prices in Gondal in Gujarat were steady at INR 5,150-6,700 per 100 kg, said Ashok Virvani, a trader from the state. "No major improvement is expected in the near term in groundnut prices due to sluggish export demand and poor quality of arrivals damaged by rains," he said. Government procurement is going on, but it is not very helpful for farmers as they are not making enough profit, he added.

COTTONWASH OIL is an edible oil that is extracted by crushing cottonseed. This vegetable oil is frequently used for frying and baking. It is also used as salad dressing because of its neutral taste. Cottonwash futures made their debut on the National Commodities and Derivatives Exchange on Sept. 3. Upon expiry of the contract, the positions would be settled in cash and there will be no physical delivery. The expiry date for a contract is the 20th day of the delivery month.

On the National Commodity and Derivatives Exchange:

--December contract for cottonwash oil was traded at INR 1,211.2 per 10 kg, down 1.02% from the previous close.

--January contract for cottonwash oil was traded at INR 1,200 per 10 kg, up 0.65% from the previous close.

End

Edited by Rajeev Pai

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