MUMBAI (Commodities control) – Mustard seed prices in the spot market rose to 3-month high during the week ended Friday supported by robust domestic demand on the wake of improving sales of mustard oil coupled with restricted farmer selling.
MUSTARD SEED:
Mustard seed prices during the week closed up by Rs 10 at Rs 3865/100kg in the benchmark market of Jaipur. However prices touched a three month high of Rs 3880 on 27th July. During the week, seed arrivals hovered between 0.90 lakh bags to 1 lakh bags (85 kg each) unchanged a week ago.
During the start of the week crushers procured mustard seed aggressively amid good sales of mustard oil but towards the end of the week crushers slowed down their buying activity due to which mustard seed price declined marginally but still closed up week on week.
The focal point of the market was the improving demand of mustard oil in most of the spot markets of the country.
On account of the robust demand of mustard oil crushers started procuring mustard seed in bulk quantities in last three weeks which boosted the prices substantially.
Spot mustard seed prices have jumped by 4.30 percent in July whereas it has jumped by 5.30 percent in last three months.
Further farmers are reluctant to sell mustard seed in bulk quantities as they are anticipating higher prices in coming days which also improved the market sentiment.
In futures market, Mustard seed prices most active August contract gained by 0.38 percent to trade at Rs 3,695/100kg on the National Commodity & Derivatives Exchange Ltd (NCDEX).
MUSTARD OIL :
Mustard oil market witnessed robust demand during the week as most of the wholesale traders were procuring mustard oil in bulk quantities for the upcoming festival demand.
Mustard oil price during the week at the benchmark Jaipur market gained by Rs 8 at Rs 765/10kg. Mustard oil prices ended the week at 3-month high. Mustard oil prices during July has gained by 8.20 percent.
According to traders mustard oil demand is likely to remain strong till winter season. Generally peak demand period of mustard oil is from July-December.
Mustard oil is majorly consumed in northern and eastern parts of India as it helps to keep the body warm during winter season.
The only factor that is worrying the traders is that the premium of mustard oil to soy oil. As of now the premium of mustard oil to soy oil is of Rs 13/kg but when this premium will widens to Rs 15-18/kg then consumers might shift to soy oil which will weigh on mustard oil prices.
According to traders demand of pure mustard oil is still good and may improve by another 3-5 percent in festive season as mustard oil is trading lower by Rs 160/10kg as compared to same time of the last year.
Mustard Oil Cake
Mustard oil cake price declined by Rs 30 during the week to trade at Rs 1,610/100kg amid poor demand from cattle feed manufacturer.
Premium of cotton oil cake to mustard oil cake has dropped to Rs 10/100kg which was Rs 150 on 1st July so most of the the cattle feed manufacturers have shifted to cotton oil cake as it is considered as the premium product in cattle feed mix.
Outlook: For the coming week, Mustard Complex is likely to trade with bullish bias on account of robust demand for mustard oil.(By Commoditiescontrol Bureau; +91-22-40015516)
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