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Informist, Friday, Dec. 13, 2024

By Anjali Lavania

MUMBAI – Prices of mustard fell in Jaipur while those of soybean were steady in Indore, traders said. Prices of groundnut rose in Gondal, they added. 

MUSTARD seed prices fell by INR 25 to INR 6,475-6,500 per 100 kg in Jaipur, Rajasthan. Arrivals in the state were unchanged at 85,000 bags (1 bag = 50 kg). Arrivals across the country were also unchanged at 175,000 bags, according to Marudhar Trading Agency.

"The disposal of mustard seed stocks by the government will likely prevent significant price spikes in the short-term to medium-term," Indrajit Paul, head of research of Agrocorp International, said. The National Agricultural Cooperative Marketing Federation of India has disposed of a lot of mustard seed stocks in open markets, which has increased supply and exerted downward pressure on prices, Paul said. Government agencies have disposed of 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, according to data provided by Paul. 

"Due to warmer-than-expected temperatures in October, November and December, mustard sowing is not very good," said a trader who did not want to be named. Most farmers are preferring to sow wheat instead of mustard now, he said.  

SOYBEAN prices in Indore, Madhya Pradesh, were steady at INR 3,850-4,250 per 100 kg, said Narendra Porwal, a local trader. Arrivals were down by 600 bags to 2,600 bags (1 bag = 90 kg), he said. 

"Soybean prices have been hovering around INR 4,200 per 100 kg since the past week due to poor export demand for Indian soymeal and high imports of soyoil," Porwal said. This decline in prices below the minimum support price of INR 4,892 per kg, is attributed to subdued demand for soymeal, both domestically and internationally. The muted overseas and domestic consumption has further impacted prices, as global soybean supplies remain abundant, pressuring prices downward, according to a report by Kedia Advisory.

For Oct-Nov, soymeal exports fell to 241,000 tonnes from 385,000 tonnes a year ago, according to the Soybean Processors Association of India. Imports of crude soyoil were up 172% on year at 407,648 tonnes in November, the Solvent Extractors' Association of India said Thursday.

GROUNDNUT prices in Gondal, Gujarat, rose by INR 100 to INR 5,250-6,800 per 100 kg, said Ashok Virvani, a trader from the state. "Arrivals were of good quality on Friday, including Nabar-66 and bold kernel varieties," he added. However, this is a temporary rise in prices as sluggish export demand and poor quality stocks with high moisture content will affect prices negatively in the near-term and medium-term, he said. Virvani sees groundnut prices to be in the range of INR 4,500-INR 6,700 per 100 kg during the next two months. 

COTTONWASH OIL is an edible oil that is extracted by crushing cottonseed. This vegetable oil is frequently used for frying and baking. On the National Commodity and Derivatives Exchange:

--December contract for cottonwash oil was traded at INR 1,212 per 10 kg, down 0.95% from the previous close.

--January contract for cottonwash oil was traded at INR 1,205 per 10 kg, down 1% from the previous close.

End

Edited by Deepshikha Bhardwaj

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