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Informist, Friday, Jan. 31, 2025

By Anjali Lavania

MUMBAI – Prices of mustard and soybean fell while those of groundnut were steady in major markets Friday, traders said. According to market participants, soybean prices are expected to fall in the long run due to the increased use of distiller's dried grains with solubles as animal feed in place of soymeal.
 

Prices of MUSTARD seed were down by INR 25 to INR 6,025-INR 6,050 per 100 kg, according to Marudhar Trading Agency. Arrivals in Jaipur increased by 10,000 bags to 85,000 bags. Similarly, arrivals across the country increased by 30,000 bags to 195,000 bags, the agency said. 

"Mustard prices have been falling for a week due to limited demand by millers and poor domestic and international demand for rapeseed meal," said Mahesh Sameriya, a trader from Rajasthan. Increased arrivals also weighed on prices Friday. Some of the new mustard crop has started arriving in various mandis across the country, he said.

However, in the long term, mustard seed prices are expected to rise, especially since production this year is likely to be lower. In the long term, mustard prices could trend towards INR 7,300 per 100 kg, especially if they break the resistance level of INR 6,950 per 100 kg, signalling bullish momentum. "The long-term outlook is supported by expectations of lower new crop production, which could tighten supplies and push prices higher," said Indrajit Paul, head of research at Agrocorp International. As of Monday, mustard acreage was 8.93 million hectares, down 4.7% from a year ago, according to data from the Department of Agriculture and Farmers' Welfare.

Prices of SOYBEAN in Indore, Madhya Pradesh, fell by INR 50 to INR 3,750-INR 4,200 per 100 kg, said Shailendra Soni, a local trader. Prices are not expected to rise, with distiller's dried grains with solubles weakening demand for soymeal, he said.

"With procurement getting over in most states, farmers are unhappy as prices are still below MSP (minimum support price). If this continues, most of them will shift to other crops next year," said Sameriya. Government agencies like the National Agricultural Cooperative Marketing Federation of India and the National Co-operative Consumers' Federation of India Ltd. have purchased a record 1.63 million tonnes of soybeans from farmers across the country at the minimum support price of INR 4,982 per 100 kg till Jan. 27.

GROUNDNUT prices in Gondal, Gujarat, were steady at INR 5,250-INR 6,600 per 100 kg, said Ashok Virvani, a local trader. "Due to expectations of bumper production, weak export demand, and less crushing, groundnut prices are expected to fall in the long term," Virvani said. 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 Rajeev Pai

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