OfBusiness Oil and Seeds Dailies | 7th July 2023

Price

• In Haldia, mustard oil is priced at Rs. 1110/10kg.Rice Bran Refined priced at Rs. 915/10kg while rice Bran Crude is priced at Rs. 845/10kg.
• Yesterday, the price of mustard seeds in Jaipur remained stable at Rs. 5550, with no observed price fluctuations while in Delhi mustard seed prices were opened at Rs. 5200-5250 per quintal
• Saloni bought new mustard seed in Shamshabad for Rs. 6050/qtl (including tax), while in Goyal Kota, the opening price for mustard seed was Rs. 5300/qtl.
• On Thursday, the prices of mustard oil cake were Rs. 2580/qtl in Charkhi Dadri and Rs. 2540/qtl in Alwar. In Bharatpur, it was priced at Rs. 2600/qtl.

Demand and Supply

• Maharashtra received 55,000 bags while Madhya Pradesh got 150,000 bags of soybean, bringing India’s total soybean arrival to 225,000 bags. For mustard seed, India received 500,000 bags, with Rajasthan getting 225,000 bags and Madhya Pradesh receiving 80,000 bags.

News

• India’s mustard oil market is projected to grow at a 4.3% CAGR from 2023 to 2028.
• Unseasonal rainfall and lower-priced imported oils like Palm and Sesame have led to increased moisture levels in Mustard, causing a decline in its Minimum Support Price (MSP).
• Minimum Support Price (MSP) for Mustard in Rajasthan, the leading producer, has decreased from Rs. 5450/qtl to around Rs. 5150 to Rs. 5200 in most cities.

OFB’s Opinion

• There is an anticipation in increase of mustard oil consumption after July when the climate becomes more stable and rainfall becomes more consistent across various regions in India. This is because during June, the heat and unpredictable rainfall tend to decrease consumption
• Consider the possibility of edible oil prices decreasing even more in the upcoming quarter. However, it’s important to keep in mind that the spread and timing of monsoon rainfall could potentially affect this trend.