India Edible Oil: Mustard, soybean prices fall on sluggish demand

Informist, Thursday, Jun 1, 2023

By Arunima Bharadwaj

NEW DELHI – Prices of mustard and soybean fell today in key benchmark markets of Jaipur, Rajasthan, and Indore in Madhya Pradesh due to lack of demand, traders said.

In Jaipur, MUSTARD was sold at 5,075-5,100 rupees per 100 kg, down 25 rupees from Wednesday due to sluggish demand, said Rupesh Parekh, a local trader.

Arrivals in Jaipur were estimated at 375,000 bags (1 bag = 50 kg), down 25,000 bags from Wednesday. Arrivals across the country were also pegged lower at 625,000 bags, compared with 675,000 on the previous day of trade, Parekh said.

In its third advance estimate, the government has pegged the country’s mustard production in 2022-23 (Jul-Jun) at 12.5 mln tn, against 12.0 mln tn in the previous crop year. 

SOYBEAN was sold at 4,900-5,075 rupees per 100 kg, down 100 rupees from the previous day of trade in Indore and arrivals of the oilseed were pegged steady at 1,200 bags, said Mukesh Mangal, a local trader. 

“Soybean prices are expected to move in the range of 5,300-5,550 rupees per 100 kg due to higher meal exports,” analysts at Kotak Securities said in their daily report.

Currently, domestic soybean prices are down by about 25% on year due to higher stocks of oilseed and record edible oil stocks, analysts said.

The government has pegged total oilseed output in crop year 2022-23 (Jul-Jun) at 41.0 mln tn, against 38.0 mln tn the previous year. It has scaled up the estimate for soybean output in 2022-23 to 15.0 mln tn from 13.0 mln tn.

The US Department of Agriculture has projected global soybean output to rise by 40.2 mln tn to 410.6 mln tn.  End

Edited by Vidhi Verma

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