Mustard oil mills across the country crushed 900,000 tn of the oilseed in May, unchanged from the previous month. New crop arrivals begin in February, and gain momentum by March. Arrivals remain in full swing till May and start dwindling from June. During Mar 1-May 31, total supply of mustard seed were estimated at 4.0 mln tn. Arrivals in Rajasthan, the largest grower, was at 1.3 mln tn, Uttar Pradesh at 565,000 tn, Madhya Pradesh and Chhattisgarh together at 235,000 tn. Crushing of mustard may lose steam in June as arrivals would start declining. For 2017-18 (Jul-Jun), India’s mustard output is seen at 7.2 mln tn, up from 6.9 mln tn harvested in the previous year. Mustard output in the country is seen higher due to better yields in key growing regions because of favourable weather.
Prices of mustard seed rose in Jaipur owing to renewed demand from domestic stockists and oil millers after prices hit a one-week low. A fall in arrivals also supported prices. Arrivals in Rajasthan were estimated at 110,000 bags (1 bag = 85 kg) today, compared with 140,000 bags. However, weak export demand for mustard meal capped gains. On NCDEX, the most-active June contract was at 3,923 rupees per 100 kg, up 0.4%.
Prices of mustard seed fell in Jaipur, Rajasthan, due to a rise in arrivals of the oilseed amid subdued demand from domestic oil millers and crushers. In Jaipur, the oilseed was sold down 20-25 rupees. Weak export demand for mustard meal also weighed on prices in the domestic market. On NCDEX, the most-active June contract was down 0.23%.
Prices of mustard seed were down in Jaipur as demand from domestic oil millers and crushers was subdued. In Jaipur, the oilseed was sold down 20-25 rupees. A rise in arrivals also weighed on the oilseed prices.
Futures contracts of mustard seed fell over 1% on the NCDEX as traders booked profit. The most active June contract was at 3,969 rupees per 100 kg, down 1.24%. A rise in stocks of the oilseed at exchange-accredited warehouses also weighed on the contracts.
The procurement of mustard seed under price support scheme of the central government will continue till May 31. Chief Minister Manohar Lal Khattar stated that some farmers were left out from the procurement of mustard seed due to reasons including rain and immaturity of the crop. Hafed has already procured 2.28 lakh metric tonne mustard seed from the 1,14,917 farmers covering 4,100 villages of the state. The left out farmers will get benefit from this extension in the procurement. Therefore, in the interest of the farmers the state government has decided to procure mustard seed from all left out farmers who could not sell their mustard crop between March 15 to April 1 due to these reasons.
A warm, dry spell in Europe may reduce harvest yields for rapeseed, the continent’s most important oilseed crop, by adding pressure on plants that have endured adverse weather since sowing. Hot, dry spell affected flowering, caused too fast growth. Dims hopes of yields offsetting German, Polish area fall. France’s farm ministry estimates the rapeseed area at 1.50 million hectares, up 6.3 percent on last year. But 2017 also saw a record national yield of 3.8 tonnes per hectare.
Prices of mustard seed rose in the benchmark market of Jaipur due to demand from oil millers and government procurement. In Jaipur, the oilseed was sold at 4,045-4,050 rupees per 100 kg, up 20-30 rupees from the previous day. Arrivals of mustard seed in Rajasthan were unchanged at 135,000 bags (1 bag = 85 kg). Reports that government may increase the import duty on soyoil, sunflower oil and crude canola oil is also seen supporting mustard seed prices. The most active June contract on the NCDEX was up.
India mustard seed futures up on spot demand.
India mustard oil softens on sluggish local demand.
Monthly rapeseed meal exports from Ukraine are at a near-minimum level since November 2017. Ukraine exported 1 KMT of rape meal in March 2018 against 0.5 KMT in February 2018 and 1.2 KMT in March 2017. A total 64.5 KMT was supplied to foreign markets in July-March 2017/18, i.e. 16% less than at the same time a year ago (54.1 KMT). The top importer of Ukrainian rape meal is the European Union, which absorbs 78% of total exports from Ukraine. The second largest importer is Israel (9%). Traders exported 95.219 KMT of rapeseed to an amount of USD 41.368 Ml and imported 232 MT of the commodity valued at USD 1.009 Ml. At the time, soybean exports totaled 1028.776 KMT to an amount of USD 388.473 Ml. The commodity’s imports were at 1.849 KMT to an amount of USD 1.779 Ml.
Prices of mustard seed rose in the benchmark market of Jaipur because of higher demand from domestic crushers. There is good demand from oil millers, as well as steady export demand for the meal, which is seen pushing prices of the oilseed higher. The most active June futures on NCDEX, however, were down 12 rupees at 3,951 rupees per 100 kg, tracking weakness in soybean and strength in the rupee against the dollar. A firm rupee against the dollar is unattractive for exporters of mustard meal.
Mustard futures on NCDEX may rise due to upbeat demand scenario for mustard meal, analysts said, and added that a pick-up in demand at lower levels may also support prices. For Nov-Apr, palm oil imports increased to 4.57 mln tn from 4.31 mln tn in the year-ago period, while import of soft oils declined to 2.57 mln tn from 2.69 mln tn. Likely weakness in key crude palm oil contracts on Bursa Malaysia Derivatives may weigh on sentiment.
Rapeseed oil production is persistently ahead of last season. The first nine months of the current marketing year 2017/18 saw a 23% year-on-year rise in production. So, large and medium crushers produced 81.2 KMT of rape oil in July-March 2017/18 against 65.8 KMT in the same period last season. Rape oil production declined dramatically in the following five months of the season, to at most 1 KMT a month. Rape oil production fell to 0.229 KMT in March 2018, down 71% from February 2018 and down 84% from March 2017 (1.417 KMT). Ukrainian rape oil exports decreased to 0.2 KMT in March 2018 versus 0.5 KMT in the previous month and 1.6 KMT in March 2017. A total 60.4 KMT of the commodity was supplied to foreign markets in July-March 2017/18 that is a four-year low and almost 11% less than in the same period last year (67.8 KMT).
Canola contracts continue to chop around the C$525 to C$535 per tonne range during the week ended May 11, despite some recent government reports that were deemed bullish for the market. Statistics Canada released its stocks numbers which confirmed this year’s carryout would be extremely large. The agency pegged canola stockpiles, as of March 31, at 9.1 million tonnes, which greatly exceeded last year’s number of 7.9 million. To compound the situation though, is the fact that demand for exports are still lagging last year’s pace, despite a steady crush rate.
Prices of mustard rose slightly in Jaipur, Rajasthan, due to improved demand for the oilseed from domestic crushers amid lower arrivals. Arrivals of mustard seed in Rajasthan were estimated at 110,000 bags. Procurement of the mustard seed by the government, export demand of mustard meal is also seen supporting mustard seed prices.
Oil mills across the country crushed 900,000 tn mustard in April, up 12.5% from the previous month. The mills crushed 800,000 tn of the oilseed in March. Crushing was higher in April as arrivals of the new crop increased. The crop has been harvested completely at present and farmers are bringing it to the spot markets in abundance. Crushing of mustard would gain more pace in May with a rise in arrivals. For 2017-18 (Jul-Jun), India’s mustard output is seen at 7.2 mln tn, up from 6.9 mln tn harvested in the previous year.
Haryana State Cooperative Supply and Marketing Federation has so far purchased over 1.93 lakh metric tonnes of mustard in the current purchase season. As many as 99,501 farmers have so far been benefited with this purchase. 42,558 metric tonnes of mustard has been purchased in district Bhiwani, 9,122.30 metric tonnes in Charkhi Dadri, 5,734.90 metric tonnes in Fatehabad, 11,635.47 metric tonnes in Gurugram and 1,418.56 metric tonnes in Nuh.
The ICE Futures Canada canola market ended mixed. The front-month July contract was boosted by gains in soyoil while the more deferred contracts were pressured by strength in the Canadian dollar. Traders were positioning themselves ahead of North American stocks data. Spring seeding is in full bloom and most farmers are too busy to do much selling, which lifted the market. As well, some parts of Alberta are currently too wet to seed. Most analysts expected U.S. ending stocks to be around around the 2.18 billion bushel mark, which would be slightly bearish for prices.
Prices of mustard rose in Jaipur due to rising demand from domestic oil millers and crushers. Mustard crushing across the country was estimated at 800,000 tn in March, more than double of 375,000 tn in the previous month. A fall in arrivals also supported prices of mustard seed.