Futures contracts of mustard seed on NCDEX declined for the second straight day as investors booked profit after the commodity hit a seven-month high. The most active November contract on NCDEX traded down 1.5% from the previous close.
Prices of mustard seed were up in Jaipur, Rajasthan, owing to higher demand from domestic oil millers and crushers, as well as limited supplies. Higher temperatures in key growing areas have delayed sowing, creating bullishness in the market. Prices of mustard seed also received support after the government raised the minimum support price of the oilseed for the coming rabi marketing season.
Facing stiff opposition from various quarters, India has deferred the commercial release of locally developed genetically modified mustard.
The November contract of mustard on the National Commodity and Derivatives Exchange touched a nearly seven-month high due to a rise in minimum support price. Futures contracts of mustard have largely been on a rise in the past couple of weeks and are likely to trade higher. In the long term too, prices of the oilseed are seen rising, supported by firm demand for mustard oil with the advent of winters.
IMD’s Agrimet division has advised farmers in Gujarat to prepare land for sowing of rabi mustard and fennel. It has asked growers to procure certified mustard seeds–Gujarat Mustard 1, 2, 3 or 4–for sowing. For sowing of rabi fennel, it has suggested certified seeds like Gujarat Fennel 2, 11, and 12.
The November contract of mustard seed on NCDEX rose because of concern about lower area under the oilseed this rabi season. On NCDEX, the most-active November contract was up 24 rupees from previous close. Government has approved a 200-rupee per 100 kg hike in the minimum support price of mustard to 3,900 rupees per 100 kg. This created positive sentiments. However, gains are seen capped due to higher supply.
The November contract of mustard seed on the NCDEX, hit a six-month high, owing to improved demand for mustard oil. On NCDEX, the most active November contract was up 24 rupees from previous close. A decline in stocks at exchange-accredited warehouses also supported mustard seed prices
Futures contracts of all edible oils, barring mustard, traded lower on domestic exchanges, in line with international markets. Futures contracts of soybean fell around 1% on the NCDEX, tracking weakness in key contracts on the CBOT.
Mustard seed prices rose in Jaipur, Rajasthan, as demand for the meal from overseas buyers strengthened. Limited supply, coupled with improved demand from domestic oil millers and crushers, also supported mustard seed prices. Likelihood of lower acreage due to warm temperatures in key growing areas is also seen supporting mustard seed prices.
Prices of mustard seed were a tad up in Jaipur due to limited supply coupled with improved demand from domestic oil millers and crushers. Export demand for mustard meal also supported mustard prices.
Prices of mustard seed rose in Jaipur because of a slight recovery in the demand from oil millers. Expectations of lower acreage under the oilseed this season due to warm temperatures in key growing areas are also seen supporting oilseed prices. However, futures of the oilseed on the NCDEX ended lower because of profit booking by the investors after prices hit two-week high.
Futures contracts of mustard seed on NCDEX rose due to short covering by traders as prices declined in the last two trading sessions. The most-active November contract was up 0.6% from previous close. Expectations of higher mustard meal exports during September is likely to support mustard seed prices.
The National Agricultural Cooperative Marketing Federation of India has offered 12,798.68 tonne of mustard seed for auction through NCDEX e-Markets. The oilseed was procured under the price support scheme to support farmers. The pulse is stocked at godowns of Central and State Warehousing Corp in Hissar, Rewari, Mohindergarh, and Narnaul in Haryana.
Oil mills across the country crushed 425,000 tonne of mustard seed in September, down around 6% from previous month. Crushing of mustard seed in September fell month-on-month because of shrinking arrivals in wholesale markets. Subdued purchases from oil millers and mustard meal exporters also led to lower crushing. Oil mills have crushed about 4.3 million tonne of mustard seed since the start of the crushing season in February compared to total arrivals of 4.6 million tonne during the period.
Planting of winter cereals continues in Ukraine. Planted on 4.626 Million ha by October 04 (64% out of the projected 7.238 million ha). Winter wheat and triticale were planted on 4.257 million ha (69%) against 3.648 million ha in 2016. At the same time, winter barley was sown on .251 million ha (27%) and winter rye on .118 million ha (73%).
NCDEX mustard up 1% on improved demand.
India mustard seed futures remain up on strong spot demand.
Bucking trend in rest edible oil basket, mustard on the NCDEX closed around 1% higher because of improved demand from oil mills at lower price level.
Mustard seed prices rise in futures trading as participants enlarged positions, driven by a firming trend at the domestic spot markets on robust demand. Apart from tight stocks in the market following pause in supplies from growing regions, festive season demand bolstered trading sentiments at futures trade here.
Mustard seed prices down in Jaipur on higher stocks.