Weak Purchases by Oil Mills Lead to Softening of Mustard Prices

Due to weak purchases by oil mills, mustard prices softened in the domestic market on Saturday. In Jaipur, the price of conditioned mustard dropped by ₹25, settling at ₹7,125 per quintal. Several branded oil mills reduced their purchase prices by ₹25 to ₹50 per quintal during the evening session. On the Bursa Malaysia derivatives market, crude palm oil prices strengthened towards the end of the current week. According to traders, palm oil prices received support from improved export trends from Malaysia during the period from 1st to 25th December. However, export recovery remains limited, and investors are focused on whether better shipments and seasonally weaker production can help reduce the increased inventory levels. The support for palm oil is currently limited due to a tightening soy and palm oil spread. Meanwhile, in the domestic market, mustard oil prices exhibited a mixed trend. According to experts, domestic demand for edible oils is expected to remain stable due to the consumption season. However, the rise or fall of mustard oil prices in the spot market will largely depend on the prices of imported edible oils. Traders noted that in November, soybean oil exports from Argentina decreased due to reduced domestic crushing, which impacted shipments. Exports fell to 5.24 lakh tons in November, compared to 6.46 lakh tons in October and 6.87 lakh tons in November of the previous year. Ongoing purchases from India and Nepal, combined with lower soybean stock levels compared to last year, kept the market relatively stable. Global food oil markets are currently under pressure due to availability issues, which has weakened the demand for soy oil. Despite tight supplies in Argentina, the adequate availability of palm oil and other oils is dominating market sentiment. In Kolkata, the price of mustard oil (cold-pressed) weakened to ₹1,540 per 10 kg. In Tonk, the price of mustard oil (cold-pressed) remained steady at ₹1,451 per 10 kg, while in Kota, it was ₹1,450 per 10 kg. However, in Bundi, mustard oil (cold-pressed) prices rose to ₹1,425 per 10 kg. In the Charkhi Dadri market, mustard cake prices increased by ₹30, reaching ₹2,730 per quintal, while in Bharatpur, mustard cake was priced at ₹2,800 per quintal. In Kota, mustard cake prices stood at ₹2,760 per quintal, and in Sumerpur, they were ₹2,825 per quintal. Despite this, prices have not received sustainable support, and palm oil’s abundant availability continues to exert pressure on the market.

Insert title here