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Informist, Monday, Dec. 30, 2024

By Anjali Lavania

MUMBAI – Prices of mustard and soybean rose on Monday in key spot markets in the country, while those of groundnut fell traders said. Groundnut prices may remain under downward pressure on likely record production this year, they said.

MUSTARD seed prices rose by INR 50 to INR 6,550-INR 6,575 per 100 kilograms in Jaipur. Arrivals in Rajasthan were up by 5,000 bags to 70,000 bags (1 bag = 50 kg). Arrivals across the country were up by 20,000 bags to 170,000 bags, according to Marudhar Trading Agency.

"Mustard prices are improving but at a slow pace and are not expected to cross the level of INR 6,800 per 100 kg in the near term," said a trader who did not want to be named.

Mustard prices are currently hovering above the minimum support price of INR 5,950 per 100 kg, compared with INR 5,850 per 100 kg a year ago, Amit Gupta, research analyst at Kedia Advisory said. 

The harvest in the new year will determine the yellow seed prices in the long run, Govind Jadhav, a research analyst at Samunnati, an agri-enterprise company, said. The mustard harvest is likely to begin in Feb-Mar.

However, in the long term, the mustard market offers optimism. Limited production can create tighter supplies, which may push prices upward. Rajasthan is expected to lead this rally, supported by strong domestic demand and reduced inventory levels.

In the current rabi season, mustard acreage is seen running below last year's level. As of Dec. 16, mustard acreage was 8.6 million hectares, down 5.4% from a year ago, according to data from the Department of Agriculture and Farmers Welfare. 

SOYBEAN prices in Indore rose by INR 100 to INR 4,000-INR 4,300 per 100 kg, said Narendra Porwal, a local trader. Arrivals were down 200 bags to 2,400 bags (1 bag = 90 kg), he said. 

"A slight spike in soybean prices is largely attributed to improved demand for soymeal. The international market's upward trend in soymeal prices has further supported domestic price increases," Shailendra Soni, a local trader from Madhya Pradesh said. However, bullish potential is deemed low due to anticipated large harvests in South America, he added.

GROUNDNUT prices in Gondal in Gujarat fell by INR 100 to INR 5,200-INR 6,750 per 100 kg, said Ashok Virvani, a trader from the state. Groundnut prices are witnessing a downward trend due to both weak domestic and global demand, he said. Moreover, Virvani believes that high production during the new year could result in a fall in prices.

Groundnut production for the 2024-25 season is projected to reach a record 10.36 million tonnes, a significant increase from 8.67 million tonnes last year, according to the Department of Agriculture and Farmers Welfare.

End

Edited by Saji George Titus

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