Mustard production by large and medium-sized plants of the fat-and-oil industry grew to 828 MT in October 2017, or 14% more than in the previous month (725 MT) and up 32.5% from October 2016 (625 MT). Production amounted to 6.7 KMT in January-October, or up 15% year-on-year (5.8 KMT in January-October 2016).
Mustard seed prices rose in Jaipur, the benchmark market in Rajasthan, due to improved demand for oil millers and crushers amid a fall in arrivals. Seasonal demand for mustard oil supported prices of the seed.
Among oilseeds, only rapeseed production margin continues moving upwards. According to the forecast of the Institute scientists, its margin of profit increase to 58.8% against 44.9% in 2016 and 44.3% in 2015. The downward trend in sunseed production profitability persist: 30.8% in 2017 against 80.5% in 2015 and 63% in 2016. So, its percentage more than halved from last year. Soybean production margin may fall to 25.4% that is half as high as in 2016.
Ukraine exported 343.9 KMT of rapeseed in October 2017/18, or half as much as in the previous month. As a reminder, Ukrainian rapeseed exports reached a record 700.5 KMT in September 2017. Roughly 1680 KMT was shipped abroad in July-October 2017/18, during the most productive months for the rapeseed market. This volume is much larger than in the last three seasons, but down 5.8% from the record set in the same month in MY 2013/14 (1783.4 KMT). Rapeseed supplies to the EU continue gaining pace in the current season (1366.7 KMT against 747.5 KMT a year ago).
Prices of mustard seed rose in benchmark Jaipur market due to a rise in demand from domestic crushers and stockists, and a fall in acreage of the crop.
Mustard seed prices were up in Jaipur due to improved demand for mustard oil in the ongoing winter season. A fall in acreage of the oilseed further supported prices of mustard seed.
Futures contracts of mustard seed were up on the NCDEX due to a fall in the acreage of the oilseed. Improved demand from domestic oil millers and crushers lifted prices at Jaipur in Rajasthan, thereby, supporting contracts on the NCDEX. On the NCDEX, the most active December contract was up 0.8%.
At the moment, the plant’s design capacity is 1 KMT a day and 300 KMT a year. This is raw material processing. The plant has processed 5 KMT of feedstock since its launch. In addition, 400 MT of sunoil and 1.6 KMT of rape oil were produced in July 2017. Also, it is projected to purchase 100-150 KMT of rapeseed and sunseed from farmers in North-Kazakhstan region. Roughly USD 15 Ml or KZT 5 Bl was invested in the construction at the first stage and oilseed plantings in the region were expanded by 280 Th ha. Also, the plant has already exported 2 KMT of rape oil to China.
Rapeseed plantings are on the rise in the UK. Estimated at 9% to 616,000 hectares the increase in rapeseed plantings ahead of the 2018 harvest.
Futures contracts of mustard seed on the NCDEX were down nearly one percent as investors booked profits after hitting a 10-month high. The most active December contract on the NCDEX was down 0.9% from previous close.
Prices of mustard seed rose in Jaipur, Rajasthan, due to a fall in arrivals along with improved demand for mustard meal from overseas buyers. Improved demand for mustard oil due to winter season has further supported seed prices. Supplies have declined because farmers are holding their produce in anticipation of a further rise in prices.
Mustard contracts rose over 3% on the National Commodity and Derivatives Exchange, tracking gains in the spot market of Jaipur, where prices were up due to a fall in arrivals. The December mustard contract hit a 10-month high of ended 2.7% higher at 4,147 rupees on reports the government may increase the incentive on exports of oilmeals to 10% from 5% to support domestic prices. Prices of palm oil ended almost 2% lower on the Malaysian bourse due to a strong ringgit against the dollar.
Prices of mustard seed were up in the benchmark market of Jaipur, Rajasthan, as higher demand for mustard oil due to the winter supported seed prices. A fall in arrivals amid improved demand from domestic oil millers and crushers also supported prices.
Futures contracts of mustard seed hit an eight-month high of 4,029 rupees per 100 kg on NCDEX on talks of an increase in incentive on export of oilmeals to 10% from 5%. On NCDEX, the most-active December contract was up 0.9%.
37.9 KMT of rape oil was produced in Russia in September 2017 against 20.7 KMT in August 2017 and 33.5 KMT in September 2016. Consequently, overall rape oil production in July-September 2017/18 was up 9.1% year-on-year at 85.7 KMT against 78.5 KMT a year ago.
Mustard seed prices were up in Jaipur, Rajasthan owing to improved demand from domestic stockists and oil millers coupled with a fall in arrivals.
The Commission on Agricultural Costs and Pricing, in a report on 2017-18 rabi crops, had recommended linking the minimum support price of mustard seed with oil content to incentivize farmers to switch to better varieties. The minimum support price of mustard should be linked to the basic oil recovery of 35%, with higher price for every 25 basis point increase in oil content beyond the basic level. There are variations in oil content of different varieties of R&M (rapeseed and mustard) and therefore a uniform MSP may not be desirable. While the average oil content in mustard is 35%, varieties grown in Rajasthan and parts of Gujarat have oil content of up to 40-48%. The pricing panel proposed paying farmers 15.83 rupees per 100 kg for every 25 basis percentage point increase in oil content above the base level of 35%. The farm ministry, however, rejected the panel’s proposal on the grounds that it would be tough to implement. The government instead announced a flat bonus of 100 rupees per 100 kg on the minimum support price of 3,900 rupees for mustard recommended by the pricing panel for this rabi season, to ensure farmers get more money.
Futures contracts of mustard seed on the NCDEX rose, taking cues from the benchmark market of Jaipur. Prices of mustard seed were up in Jaipur, as demand for mustard oil is rising due to onset of the winter.
Production is estimated to have fallen sharply to 115 kt due to lower area seeded and yields. Production of each of the three major types of mustard (yellow, brown and oriental) is expected to decrease. However, total supply is forecast to fall by only 18% due to higher carry-in stocks. Exports are expected to be similar to last year at 125 kt and, as of August and September, the US and the EU are the top two markets. Carry-out stocks are forecast to fall and, as a result, the average price is forecast to be sharply higher than in 2016-17
Prices of mustard seed rose at Jaipur in Rajasthan after the government, raised the import duty on all edible oils to support the domestic oilseed industry. The government raised the import duty on refined mustard oil to 35% from 20%. A fall in arrivals coupled with improved demand from domestic oil millers and crushers, supported castor seed prices.