Futures contract of mustard seed was down on the NCDEX, due to sluggish demand for mustard oil from overseas buyers. On the NCDEX, the most-active August contract traded down 0.24% from previous close. A fall in stocks at the exchange warehouses, however, cushioned fall in prices.
The NCDEX has marked 4,240 tonne mustard seed for staggered delivery in the July contract. The bourse has also marked 1,720 tonne of cottonseed oilcake, 840 tonne of castor seed, 550 tonne of soybean, 528 tonne of jeera, 430 tonne of guar gum, 420 tonne of coriander, 250 tonne of barley, 190 tonne of maize, 150 tonne of guar seed, 25 tonne of turmeric and 20 tonne of wheat for staggered delivery in the July contract.
Mustard seed prices in Jaipur were down because of lower demand from the oil millers. However, arrivals across the country were unchanged at 95,000 bags (1bag=85kg). The most active August futures ended down 1%. Weakness in the entire edible oil complex due to expectation of a cut in the import duty on the crude palm oil is also seen creating bearish sentiment.
Mustard seed prices in Jaipur hit a one-month high up 30 rupees from previous close, on a fall in arrivals and due to improved demand from domestic oil millers and crushers. Seasonal demand for mustard oil has lifted seed prices. Supplies are lower as farmers are not ready to sell much of their produce at existing rates, as they expect prices to rise in the coming days.
No decision has been taken so far on clearance to commercial release of genetically modified mustard seed in India. The Centre submitted before the court that on Jul 24 it will file a detailed report on how it plans to go about the launch, including a tentative date by which the decision is likely to be taken. India has so far not allowed transgenic seed in food crop, and cotton is the only crop where genetically modified seeds are allowed for commercial use. Genetic Engineering Appraisal Committee had cleared a genetically modified brinjal seed for commercial use, but the government had put a moratorium on its release.
Futures contracts of most constituents of the edible oil basket, barring degummed soyoil, rose on the domestic commodity exchanges. Futures of mustard rose over 1% on the National Commodity and Derivatives Exchange noting gains in the spot markets. Prices of mustard rose in the key market of Jaipur as the supply was not sufficient to meet the demand from domestic oil millers and crushers. Weak export demand for mustard meal from overseas buyers, however, capped gains in prices.
The agriculture department in Rajasthan has estimated mustard output in 2016-17 (Jul-Jun) to rise by 21% on year to 3.94 million tonne because of higher yields. According to the fourth advance estimate, output of guar in Rajasthan, the largest producer of the crop, may fall 37% on year to 1.4 million tonne in 2016-17.
Prices of mustard seed in Jaipur, the benchmark market for the commodity, rose for the third consecutive day due to higher demand from domestic oil millers and stockists. In Jaipur, the oilseed was sold up 10 rupees from previous close. Lower arrivals also supported prices of the oilseed. Supplies have declined because farmers are holding on to their produce, as they expect prices to rise in the coming days.
Australia 2017-2018 canola output is seen at 3.12 million tonne, down 26% on year, due to seed shortages and inadequate rains. Patchy and light rains so far and forecast of insignificant rains over the next few weeks has dented outlook for canola harvest.
Futures contract of mustard seed hit a two-month-high of 3,657 rupees per 100 kg because of strong demand for the edible oil and seed for crushing. On NCDEX, the July contract was at 3,642 rupees per 100 kg, up 0.8% from previous close, while the most-active August contract was up 0.9% at 3,682 rupees. Higher demand for the edible oil has led to an increase in oilseed purchases, and is supporting upside in mustard seed prices.
Prices of mustard seed in Jaipur extended Saturday gains due to improved demand from domestic stockists after a recent fall in prices. In Jaipur, the benchmark market, the oilseed was sold up 30 rupees from previous close. Arrivals across the country were estimated at 130,000 bags (1 bag = 85kg), compared with 115,000 bags on previous close.
Oil mills in the country crushed 550,000 tonne mustard seed in June, 23% lower from the previous month. Mills had crushed about 712,500 tonne the oilseed in May. Oil mills have crushed about 2.9 million tonne mustard since the start of the crushing season since Feb 15, as against total arrivals of 3.4 million tonne during the period.
Prices of mustard seed up 30 rupees in Jaipur due to bargain buying by market participants after a recent fall in prices. Arrivals across the country 11,050 tonne vs 10,625 tonne.
Mustard up on NCDEX as stock at warehouse declines.
NCDEX mustard up as stocks at warehouse decline.
Canola market at mercy of weather.
Mustard seed down in Jaipur on subdued demand.
NCDEX mustard seed down on weak export demand for oil.
Mustard seed prices unavailable as market shut.
Mustard seed up in Jaipur as supply down, demand up.