NCDEX mustard down on spot cues, likely higher output.

Futures contracts of mustard seed fell on the NCDEX, taking cues from losses in the spot markets due to likely higher production this year. The most active June contract of mustard seed on the NCDEX traded down 0.7% from the previous close. Prices fell in the spot markets due to higher arrivals of the oilseed and poor demand for mustard oil and meal. Arrivals in Rajasthan are at 140,000 bags (1bag=100kg), compared with 135,000-140,000 bags on previous close. A rise in mustard seed stocks in NCDEX-accredited warehouses on 05 May to 35,402 tonne from 34,511 tonne on 04 May, also weighed on the oilseed prices. Mustard seed production is seen at 7.0 million tonne in 2016-17 (Jul-Jun), higher than 5.8 million tonne in the previous year.