Mustard Seeds to Go More Up

Mintec Global
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Wholesale prices of mustard seeds in the domestic Indian market had once turned into a slump due to high mustard production and a fall in the prices of edible oils in the international markets. In the last two days, due to the strengthening of the oil mills’ hold in the market, there has been an improvement in the market.

It has been almost six to seven months since the new mustard crop arrived. According to experts, crushing quality has come down by 22 percent as compared to the same period last year due to production being close to 120 million metric tonnes and selling pressure in the international markets. Even traders who usually stock rice and pulses were interested to buy mustard on March-April 22.

Grocery and dry fruits vendors were also hooked on mustard, after no good improvement, they have been selling their goods at a low price for the last two months. The stockists also in mustard have suffered from huge losses so far. Recently, the price of mustard in the mandis of Rajasthan is about $0,5 per kg witnessing a 42 percent low.  Jaipur mandi also had a massive fall, stockists sold mustard all around in domestic markets for 0,7 to 0,8 per kg, but eventually, local oil mills started getting real and good demand at these levels, due to which the market improved.

In a week’s span of time, the mustard market improved a lot in all areas of India. The traders are still not convinced that this boom will be sustainable. At present, a further increase of $0,20 per kg can be expected. Mustard can go up to 0,85 per kg in the domestic market.

Experts’ opinions are that the stock of all-around mustard is abundant. On the other hand, a new soybean crop has arrived in Brazil, Argentina as well as domestic producing regions, which should not lead to bullish trade in all edible oils including mustard in the long run.

The mustard seeds brown bold prices were recorded at $0,86 per kg FOB.