NCDEX mustard down on likely high output, spot cues.

The most-active May contract of mustard seed on the NCDEX traded down for the second consecutive session because of a likely rise in output this year. Mustard seed production for the year 2016-17 (Jul-Jun) is seen at 7.0 mln tn, higher than 5.8 mln tn in the previous year, said Solvent Extractors Association. In Rajasthan, the output is likely to rise 14.5% to 3.7 million tonne in the crop year to June. The most-active May contract of mustard seed traded down 0.8%. Poor demand for mustard oil and mustard meal has also pulled down the demand for the oilseed in spot markets, and this has weighed on its prices. Arrivals across the country are estimated at 320,000 bags (1bag=85kg) compared with 270,000 bags on yesterday.