MUMBAI (Commodities control) – Indian Mustard seed traded steady in the spot markets amid limited demand at higher prices and restricted farmers selling at lower prices during the week ending 17th June.
MUSTARD SEED:
Mustard seed prices during the week closed flat at Rs 3720/100 kgs in the benchmark market of Jaipur amid limited demand at higher level whereas declining supply on restricted farmer selling supporting prices at lower level. During the week, seed arrivals hovered between 1.60 lakh bags to 1.95 lakh bags (85 kg each) against 1.60 to 1.85 a week ago.
During the start of the week, prices were trading firm on account of improved demand from processors, however midweek, Crushers demand faded at higher price level due to limited sales of mustard oil, leading to a decline and towards the end of the week processors buying improved.
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 July contract gained by 0.16 percent to trade at Rs 3,595/100kg on the National Commodity & Derivatives Exchange Ltd (NCDEX).
As the futures are trading at a discount to spot prices so most of the traders and speculators are still creating long position as they are anticipating that spot prices are not likely to fall below MSP of Rs 3,700/100kg on account of declining supply so futures prices will trade higher to match up with spot price.
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MUSTARD OIL :
As the progress of monsoon has slowed down so most of the traders are procuring mustard oil in limited quantity at higher prices as they are expecting that retail demand will not increase sharply in near term.
Mustard oil price during the week at the benchmark Jaipur market declined by Rs 2 to trade at Rs 706/10kg.
Further, price of mustard oil is still 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.
Port stock of canola is reported at 11,335 tonnes as of 12 June vs 9,009 tonnes as of 6 June.
MUSTARD OIL CAKE :
Mustard oil cake price traded mostly on the downside as most of the cattle feed manufacturers demand has shifted to cotton oil cake.
Mustard oil cake prices has declined by Rs 30 during the week to trade at Rs 1,645/100kg.
Outlook: 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)
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