There is a reduction in the supply of mustard seeds in contrast to the high demand among the crushing mills. This has increased the price of the commodity in the market. Therefore, according to experts, the mustard price is likely to become bullish in the coming days.
Factors Influencing The Market
Several factors have influenced the price of mustard in the market.
- Amidst good local demand, there is a decrease in the quantity of the product among the stockists.
- The price increase in the raw mustard has inflated the mustard oil price in the market.
- The stockists are currently also holding on to their earlier stocks. This is due to the news of the late harvest of the standing crop.
- Due to the unseasonal heavy rain last year, the harvest is likely late in Uttar Pradesh, Rajasthan, and other mustard-producing states.
- Also, the news that the rain has damaged the crops has helped the market go upward.
- Though there will be an increase in the overall production which should be between 11.5 and 12 million tonnes compared to last year’s 8.5 million, it now remains to be seen how good the quality of the crop will be.
- Haryana farmers and traders of the spice are concerned that the government might lower the MSP due to the increased production.
- The new products haven’t hit the market yet and are expected to arrive in March’s beginning or second week.
Arrival
Currently, the spit markets are receiving between 150 and 175 thousand bags of mustard daily.
Prediction
According to experts, the market is unlikely to move south for mustard in the coming days. However, the arrival of the new crop will determine the final trend. The other factor, like the quality of the produce, will be the main criteria in deciding the future direction of the mustard market in India.
There is a probability of the commodity’s price going down in the future if the stockists go on an overdrive to stock the storage when the new products arrive, after which, if they hold on to the reserves in anticipation of a higher price, it can drive the market southward.
Price
Brown Mustard Seeds Micro Machine Clean
| Date | Price |
| February 21 | $1,150 per kg FOB |
| February 8 | $1,155 per kg FOB |
| February 1 | $1,160 per kg FOB |