Indian Mustardseed Likely To Trade Range Bound Next Week

MUMBAI (Commodities control) - Indian Mustard Complex traded in the positive due to lower supply of Mustard seed during the week ending June 2, 2017.

MUSTARD SEED:

Mustard seed prices gained during the week to close higher by Rs 30 at Rs 3725/100 kgs in the benchmark market of Jaipur amid lower arrivals. During the week, seed arrivals hovered between 2.35 lakh bags to 1.70 lakh bags (85 kg each) against 2.60 to 2.65 a week ago. CC estimates mustard seed arrivals at 32.25 lakh tons down by 12% year on year.


Any drop in the Mustard seed prices close to the MSP of Rs 3700/100Kgs slows down the farmers selling and increases the buying by the crushers for stocking. Thus, keeping the prices supported near the MSP.

In futures market, Mustard seed prices most active June contract declined by 1.02 percent on the National Commodity & Derivatives Exchange Ltd (NCDEX), while July contract was also lower by 1.15 percent.


For the month of May, Mustard seed crush is estimated at 6.50 lakh tons as compared to 7 lakh tons in April. For the month ahead demand from processors may improve if there is good demand in mustard oil however, significant surge in prices are unlikely as farmer selling would emerge at any rise in price. Thus, overall mustard seed prices are expected to trade range bound.

MUSTARD OIL :

Demand of Mustard kachhi ghani oil is likely to improve in coming days as the monsoon is progressing as forecasted. During monsoon season demand of mustard oil increases by around five to seven percent as end consumers consumes more oil as they like to eat fried foods during rainy season. Mustard oil price during the week at the benchmark Jaipur market was steady at Rs 706/10kg.


Further, price of mustard oil is trading at a premium of Rs 8/kg to soy oil so sharp rally in mustard oil prices is unlikely. The premium of mustard oil should decline to Rs 3-4/kg then only we may see robust demand in mustard oil.


MUSTARD CAKE :


Mustard cake was trading at a discount of Rs 425/100 kgs as on 1st May to Cotton oil cake, attracting the local cattle feed manufactures to consume more of Mustard cake in the feed mix.

However, with the drop-in discount to Rs 125 /100kgs, the feed manufactures preference has shifted to cotton oil cake due to which the mustard cake prices has declined by Rs 35 to trade at Rs 1,705/100kg.

In the coming week, Mustard seed & By products may trade in a range on good demand at lower prices and higher supplies to cap any upside.

(By Commoditiescontrol Bureau; +91-22-40015516)