MUMBAI(Commoditiescontrol) - A subdued tone was observed in mustard meal at the key Jaipur market of Rajasthan due to poor demand from cattle feed manufacturers and bearish trend in mustard seed.
Mustard meal declined by Rs 300 at Rs 15,400 per tonne during the week ended February 18.
A trader from Jaipur said that demand from cattle feed manufacturers has reduced during the week as they have shifted to other oil meals, which is available at reasonable rates as per their protein content.
Further the bumper production of the upcoming mustard crop has also weighing on mustard meal prices. India agriculture ministry in second advance estimates released on Wednesday pegged domestic mustard seed crop sharply up at 79.12 lakh tonnes versus 67.97 lakh tonnes a year ago.
Industry experts have estimated mustard crop between 65-70 lakh tonnes against 55 lakh tonnes previous year.
Spread between soymeal and mustardmeal is at Rs 7,600 per tonne, but as per market participant this spread should increase to Rs 9,000 then only we may see revival in demand of mustardmeal.
Export demand has improved at lower level due to which prices have not fallen sharply.
South Korea's largest feed maker Nonghyup Feed Inc. (NOFI) has purchased about 12,000 tonnes of rapeseed meal s in a tender which closed on 10 February 2017, European traders said.
The rapeseed meal was purchased at $239.23 a tonne c&f plus a $1.75 a tonne surcharge for additional port unloading. It was likely to be sourced from India, they said.
The export quantity of mustardmeal is very less and it won’t have any positive impact on price as traders are arrying stock of around 0.75-1 lakh tonnes of mustard meal.
India Mustardmeal price were trading at $236 FAS kandla vs $222 Hbg ex. Mill (Mar) which is in disparity of $14 due to which export of mustardmeal is negligible.
(By Commoditiescontrol Bureau; +91-22- 40015516)
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