For the Quarter Ending June 2023
North America
Mustard Oil prices in North America during the 2nd quarter of 2023 followed the trend of the European market. The price of Mustard oil decreased with the start of the second quarter and continued until the final weeks of May, while it inclined significantly across the United States throughout June. This implies that the market sentiment for Mustard oil was somewhat on the north side. The reason for the price decrease was the high Mustard Oil inventories in North America at the time, the ample supply supported by weaker trade momentum. Additionally, decrease in imports from exporting counties further supported the downward price trend of Mustard oil in the North American region until May. Furthermore, the overall june’s optimistic market trend for Mustard oil was supported by surge in domestic inquires which was balanced by overall higher stockpiles witnessed within the region. However, the US Consumer Price Index (CPI) rose by 0.1% in June 2023 from May which further supported the positive demand side for Mustard Oil in the entire United States.
Asia Pacific
Mustard Oil prices across the Asia-Pacific region dropped consistently until the end of May while inclined significantly during June. Overall, Mustard oil prices decreased in the second quarter due to weak demand, weakened vegetable oil markets and falling crude oil prices, according to analysts. the Dreary request from both the international and domestic markets has kept the trade activity in a downward direction for Mustard Oil. Both the domestic and international markets did not notice any significant changes in the inquiries, which supported the weaker price trend in India until May. Furthermore, to avoid their profit losses due to low demand, market participants plan to lower the price on the domestic market. In addition, the overall mustard oil market has been quiet in June and the prices of palm oil and soybean oil have consistently decreased. In June, there has been a significant improvement in Mustard Oil prices as well as in prices of groundnut, seed oil. This was mainly due to an increase in domestic demand for Mustard Oil from end-users in the cooking, feeding and food industries. the India Manufacturing PMI registered 57.8, down from May’s 31-month high of 59.7 and below market expectations of 59.0. Consumer price growth moderated in June, after an increase of 6.5% in January which further supported the upward market trend for Mustard oil in India. With tis, the prices of Mustard Oil in the Indian market were assembled at USD 1321.53/MT Ex-Agra.
Europe
Mustard Oil market ended the second quarter of 2023 on a bearish note, with prices continuing to its downward trend across the European market until the final weeks of May. European prices of Mustard oil continue to fall, across the domestic market, due to subdued demand, weaker trade activity and higher stockpiles with the merchants. One of the reasons for the drop in the prices of Mustard oil in Europe is that the market has sufficient reserves and there was less purchasing sentiment. However, the suppliers were reluctant to place newer quotations and focused on destocking their previous stockpiles. However, as June concludes the prices of Mustard oil inclined across the European market which was supported by increased domestic demand balanced with the overall supplies among the market participants. Also, the German Consumer Price Index (CPI) rose by 0.1% in June 2023 from May, indicating a positive demand outlook. Also, the traders anticipated that the demand from dowenstream sector would continue to remain on the north side which further compelled them to raise their quotations.
For the Quarter Ending March 2023
North America
The first quarter of 2023 saw a fluctuation in Mustard Oil prices in North America due to unstable market dynamics. As a result of the unsettling year of low crop yields following weeks of dry weather, prices rose throughout the first part of the quarter. According to farmers and agricultural organizations, the supply constraints brought on by the pandemic and inflation are driving up the cost of their supplies. Although product prices were somewhat stable in the second half of the quarter, prices stabilized. The offtakes were heading downward, which caused prices to drop, and also, because of shifting market emotions, the prices were also altering.
Asia Pacific
In the Asia Pacific region, the prices for Mustard oil were seen fluctuating in the first quarter of 2023. Prices were already high due to an overproduction of mustard oil at the start of the first half in response to the pricing trend of the first quarter of 2023. Prices have increased since India's import tax on vegetable oils has been extended to March 2023. The price decreased in the second half compared to the first quarter because of the early mustard crop harvest, which led to a significant supply. The supply-demand was balanced in the market because of the piled supply of mustard oil that had previously been imported from Russia. Prices continued to be the same, which were in the declining phase throughout the final month of the quarter. Near the end of the quarter in March, prices for Ex-Agra were estimated to be around USD 1677.16/MT.
Europe
In Europe, the price of Mustard oil fluctuated throughout the first quarter of 2023 as a result of competing market sentiments. The first half of the quarter saw an increase in costs as a result of the unsettling year of low crop yields following weeks of dry weather. Farmers and agricultural organizations contend that rising inflation and supply restrictions are increasing the cost of their inputs. Price stability resulted from the edible oil market's stability in the second half of the quarter. Prices decreased as a result of a decline in downstream businesses' offtakes. Prices fluctuated as the market mood shifted and grew increasingly dynamic.
Prices for mustard oil in North America fluctuated throughout the fourth quarter of 2022 because of opposing market sentiments. Prices increased during the first half of the quarter as a result of the unsettling year of low crop yields following weeks of dry weather. Farmers and agricultural organizations assert that the pandemic-related supply restrictions and inflation are pushing up the price of their inputs. Prices stabilized as a result of some product price stability in the second part of the quarter. Prices fell as a result of the trending decline in offtakes. The prices were changing as a result of the evolving market sentiments.
Price increases were seen in mustard oil in the fourth quarter of 2022. Due to an abundance of mustard oil production at the beginning of the first half in response to the pricing pattern of the fourth quarter of 2021, prices were already high. Due to the extension of India's import tariff on vegetable oils till March 2023, prices have gone up. Due to the early harvest of the mustard crop, which resulted in a considerable supply, the price rose in the second half compared to the first quarter. Due to the stacked supply of mustard oil that had previously been imported from Russia, the market's demand-supply balance was unstable. Through the last month of the quarter, prices stayed the same. Near the end of the quarter in December, prices for Ex-Agra were estimated to be around USD 1800.32/MT.
Due to the conflicting market emotions, the price of mustard oil varied throughout the fourth quarter of 2022 in Europe. Due to the unsettling year of low crop yields after weeks of dry weather, prices rose throughout the first half of the quarter. Farmers and agricultural organizations claim that supply constraints brought on by the epidemic and inflation are driving up the cost of their inputs. Due to the second half of the quarter's stable edible oil market, prices steadied. The downward trend in offtakes from the downstream industries caused prices to drop. Prices were changing as market sentiment changed and became more mixed.
