Mustard Oil Price Trend and Forecast

Regional Price Overview

Get the latest insights on price movement and trend analysis of Mustard Oil in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Mustard Oil Price Trend for the October - December of 2023

Asia

The onset of the holiday season in the Asia-Pacific countries led to a rise in the demand for mustard oil during the initial phase of the last quarter of 2023. However, in anticipation of a steep incline in the rate of procurement of mustard oil by consumers, the manufacturing sector boosted its number of produced units, which did not work in favor of mustard oil prices towards the end of the quarter.

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As the quarter progressed gradually, the mustard oil prices began to show slow momentum as the excessive supply surpassed the existing demand. Additionally, in India, due to the upcoming elections, the government of many states offered mustard oil at rates far below the market values, and thus, the mustard oil price trend in Asia wavered at best.

Europe

The initial phase of the fourth quarter did not show any considerable movement in the mustard oil price trend. The positive influence of the festive season and the rise in imports from Ukraine could only support the mustard oil prices during the early stages. The supply of mustard seeds in the region grew profoundly as the quarter progressed and so its presence in the market while the consumer demand remained consistent. Further, the pressure of inflation and the blocking of export routes restricted the growth of mustard oil price trend.

North America

Till the third quarter, the US market showcased significant appreciation in the mustard oil price trend, but the momentum of the market was slightly lost in the last quarter. The mustard oil price trend grew but at a much slower pace. Further, the excessive influx of imports from Asian countries, which increased the competitiveness of the market, forced the domestic producers to keep their quoted prices in check in order to maintain their sales numbers.

Analyst Insight

According to Procurement Resource, the price trend of Mustard Oil are expected to be based on the global import-export balance along with the equalization of the regional supply-demand balance.

Mustard Oil Price Trend for the July-September of 2023

Asia

The mustard oil price trend enjoyed the upswing as the monsoon season got delayed in the Asian countries, leading to a significant reduction in its availability. Further, the manufacturing of mustard oil also declined in the region, creating a significant scarcity of the product. On the other hand, the demand for mustard oil inclined gradually, widening the supply-demand gap and thus resulting in the surge in the mustard oil price trend. In addition to this, the region also increased its export volumes and then the onset of festival season helped the market to gain the required momentum.

Europe

Similar to what was observed in the Asia Pacific countries, the depleted level of stockpiles and surplus demand for mustard oil helped in the surge in the mustard oil price trend in the third quarter of 2023. The region also benefitted with the arrival of festival season in the Asian countries, giving its export market a boost and the mustard oil price graph its northwards momentum. In all, the rise in both domestic and overseas demand and slow supply resulted in the rise in the mustard oil price trend.

North America

The North American market mimicked the trend observed in the Asian and European countries. In the third quarter, the region experienced a remarkable increase in the demand for mustard oil. In addition to the growing appetite of consumers, the substantial rise in the cost of production due to the hike in transportation rates resulted in the surge in mustard oil price trend. However, the supply chains here also struggled with lower agricultural produce and adverse weather conditions.

Analyst Insight

According to Procurement Resource, the price trend of Mustard Oil are estimated to follow an inclining trajectory as despite lower production, its demand is expected to grow in the upcoming quarters.

Mustard Oil Price Trend for the First Half of 2023

In the first two quarters of 2023, the prices of mustard oil suffered, especially in Asian countries. The prices continued the falling trend as the market suffered from high rates of production while the demand from domestic as well as international consumers remained low. Amid this gradual decline in the prices, many traders were hoarding the produce in hopes of bringing it into the market when the market sentiments improved, leading to a spike in the level of inventories, hampering the growth of the mustard oil price trend.

In addition to this, the consumer sector also seemed hesitant to order the product in bulk, and the cost support from the mustard seed sector also fluctuated heavily, declining the price trend of mustard oil. In India, the government advised many manufacturers strictly to reduce their MRP rates by Rs 8-10 per liter, indicating the fall in the market of mustard oil.

Analyst Insight

According to Procurement Resource, the price of Mustard Oil is estimated to stumble as the rates of production seem to surpass the demand for mustard oil in both domestic and international markets.

Procurement Resource provides latest prices of Mustard Oil. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.