MUMBAI (Commodities control) –
MUSTARD SEED:
Mustard seed prices during the week closed up by Rs 15 at Rs 3920/100kg in the benchmark market of Jaipur. During the week, seed arrivals hovered between 1.35 lakh bags to 1.45 lakh bags (85 kg each) against 1.45 to 1.65 a week ago.
As the price of mustard seed have declined by Rs 110/100kg in last one month farmers have slowed down the sales of mustard seed which has provided support to mustard seed market.
There is talk in the market that India has imported around 43,000 tonnes of mustard oil in August and 15,000 tonnes in September so the crushing has declined weighing on mustard seed demand at higher price level.
Another supportive factor for mustard seed is unfavourable weather for sowing of mustard seed. Generally sowing of mustard seed in Rajasthan starts around 5th October but as the day temperatures are above normal so farmers are waiting for the atmosphere to cool down to start sowing.
In other news Canadian canola crushers saw their second busiest week ever during the week ended Wednesday, according to the latest data from the Canadian Oilseed Processors Association.
The canola crush in the latest weekly reporting period came in at 204,820 tonnes, only slightly off the record of 208,268 tonnes hit in March.
A total of 1.48 million tonnes of canola have been crushed during the 2017-18 crop year to date, which compares with 1.56 million at the same point a year ago.
The active crush pace comes despite margins that are well off their year-ago levels.
Processor margins were estimated at about $67 per tonne above the nearby futures on Thursday, which would be about $40 below the levels seen at the same point a year ago, according to ICE Futures Canada data.
In futures market, Mustard seed prices most active November contract declined by 0.05 percent to trade at Rs 3,809/100kg on the National Commodity & Derivatives Exchange Ltd (NCDEX).
MUSTARD OIL :
Mustard oil price during the week at the benchmark Jaipur market traded steady at Rs 773/10kg.
Traders were bit surprised as they were expecting demand to rebound for the upcoming Diwali festival but that could not materialize which has weighed on mustard oil prices at higher price level.
According to traders rural demand is very subdued as there purchasing power has declined in recent times. Farmers did not get good prices for their produce in 2017 which has reduced their income and forcing them to cut of their additional expenditure.
Further, the wholesale traders are having sufficient stock of mustard oil in their inventory which can meet the near term demand so they opted to wait and watch approach.
India has not increased the import duty on import of Canola oil so India is likely to import more canola oil in coming months which will be used in adulteration of mustard kachhi ghani oil so the avilability of mustard oil in domestic is likely to remain ample.
Mustard Oil Cake
Mustard oil cake price gained by Rs 10 during the week to trade at Rs 1,660/100kg amid improved demand from cattle feed manufacturers.
Outlook: For the coming week, Mustard seed is likely to trade steady as restricted farmer selling will support prices at lower price level whereas limited demand from millers will weigh on mustard prices at higher price level.
(By Commoditiescontrol Bureau; +91-22-40015516)
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