Mustard Report
Last week, there was significant volatility in the mustard market. With the Diwali festival approaching, both farmers and traders are keen to sell their produce at higher prices. Since mustard prices have already risen considerably, the question remains whether further increases are likely. Observing the current environment in both domestic and international markets for edible oils, it can be confidently stated that there isn't a significant downturn, but there is also no strong upward momentum. This situation leads to uncertainty about future price movements. If we look at the trend from the last two years, prices have indeed risen before Diwali, but the extent of the increase this year has already surpassed previous gains. Thus, the possibility of further price hikes is uncertain, with the key factor being the arrival of mustard in the market, which could push prices higher. On Saturday, the market saw an arrival of 225,000 bags of mustard. If arrivals continue in this range, the market is likely to remain bullish. However, to breach the ₹7,200 mark, the market will need a new trigger, which is currently not in sight. If there are further increases in international markets, that could change the dynamics. As it stands, mustard prices are balanced based on demand and supply. Farmers should focus on selling their stocks without getting too greedy for a ₹100-200 increase.