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FUNDAMENTAL HIGHLIGHTS

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As of last week ending 07/01/2021, the area under mustard in the ongoing 2021-22 (Jul-Jun) rabi season was at 8.97 mln ha, up 23.2% on year, according to data by the farm ministry. The government fixed the mini-mum support price of the crop at 5,050 rupees per 100 kg for the 2022-23 (Apr-Mar) marketing season, as against 4,650 rupees in the previous year

Production of canola in Canada for 2021-22 (Aug-Jul) is seen at a 13-year low of 12.6 mln tn, Agriculture and Agri Food Canada said in its December report. Supply of canola for the country is estimated at 14.5 mln tn, the lowest since 2008-09, on tight carry-in stocks, reduced output and modest imports. Export of canola is likely to fall 49% on year to 5.4 mln tn. Volatility for canola prices is expected to remain high with the market vulnerable to sharp corrections from either demand or supply shocks.

The government has reduced the basic import duty on refined, bleached, and deodorised palm oil, to cool domestic prices, the finance ministry said in a notification. The new duty rates will be in place till Mar 31, the ministry said. The effective basic import duty on refined, bleached, and deodorised palm oil has been reduced to 12.5% from 17.5% earlier. With the new duty cut, the duty difference between crude palm oil, which is a raw material, and refined, bleached, and deodorised palm oil, which is the finished product, has reduced to 5.5% from 11.0% earlier.

The Securities and Exchange Board of India asked exchanges not to launch new contracts of some farm commodities, including those of soybean and its derivatives, and crude palm oil. The restrictions come into effect immediately and shall be applicable for one year

The Securities and Exchange Board of India has asked the National Commodity and Derivatives Exchange Ltd not to launch new futures contracts of mustard seed till further notice.

The government has imposed stockholding limits on all edible oils and oilseeds till Mar 31, according to an official notification.

The government aims to produce 17.40% more mustard crop on year at 12.24 mln tn in 2021-22 (JulJun) rabi season by encouraging farmers to bring more area under the crop, according to Farm Ministry Joint Secretary.

India's 2020-21 (Jul-Jun) mustard output is seen rising to 22.6% on year to 8.95 mln tn, according to a joint survey by the Central Organisation for Oil Industry and Trade and the Mustard Oil Producers' Association. Government estimated that mustard output during 2020-21 at 10.4 mln tn, against 9.1 mln tn a year ago. India's 2020-21 (Jul-Jun) mustard acreage was up by 6.7% on year at 7.3 mln ha as of 18th Jan., according to farm ministry data.

The government has banned the blending of mustard oil with multi-source edible vegetable oils and prohibited its sales from July 1, according to a notification by the Food Safety and Standards Authority of India

India is likely to produce around 10 mln tn of mustard in 2020-21 (Jul-Jun), up by 35% from a year ago due to higher acreage and favourable weather conditions, according to the Solvent Extractors' Association of India.

India's 2020-21 (Jul-Jun) mustard output is seen rising 22.6% on year to 8.95 mln tn, according to a joint survey by the Central Organisation for Oil Industry and Trade and the Mustard Oil Producers' Association.

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