Mustard prices seen weak on bumper soy crop

With a bumper soybean crop expected in Rajasthan this season, prices of the other major oilseed, mustard, are seen subdued for the next couple of months, said local traders.

Millers will prefer to buy soy, as it would come cheaper due to the likely bumper crop. As a result, the demand for mustard may take a hit due to the cheaper oilseed alternative.

As per preliminary trade estimates, Rajasthan is set to harvest a bumper soy crop of 750,000-800,000 tonnes this season, about 30-40 per cent more than a year ago. Soybean is sown in June-July and harvested September-October.

After Madhya Pradesh and Maharashtra, Rajasthan is India's third largest producer of soybean. The desert state is the largest producer of mustard. Rajasthan mustard, sown in October-November and harvested March-April, contributed over to the country's total output.

"Mustard prices are expected to remain subdued, at Rs 1,800-2,300 a 100 kg over the next two-three months if soy output is close to trade estimates. However, if it does not rain in the next 15-20 days, soybean output may be 10-15 per cent lower than these estimates. In that case, mustard prices may harden by Rs 100-150 a 100 kg," said Ashok Chattar, a local trader.