Jaipur mustard seed prices down as arrivals double.
India mustard seed futures slip on weak spot cues.
Prices of mustard seed fell in Jaipur today due to a surge in arrivals amid subdued demand from domestic stockists. Demand from domestic buyers was subdued as prices had hit a near two-week high. Arrivals across the country were estimated at 160,000 bags (1 bag = 85 kg) compared with 80,000 bags on 29 Sep. Supply has doubled because farmers have been offloading stocks to take advantage of the recent run up in prices.
Mustard seed prices came down in futures trading today amid slashing of positions by speculators in line with weak physical markets. Reducing of holdings by speculators, tracking a weak trend at the physical markets on ample stocks following pick up in arrivals from growing belts amid muted demand from oil mills mainly weighed on mustard seed prices at futures market here.
NCDEX to exclude 1% cash discount on Apr mustard from Feb 5.
Mustard seed prices up in Jaipur as arrivals fall.
NCDEX will exclude 1% cash discount on mustard spot polling price, effective from Feb 5. The decision by the exchange is taken in order to align the polled prices with the physical market price where cash discount is deducted while making payment. NCDEX polled spot prices with the discount will be applicable on contracts expiring in April and thereafter.
Prices of mustard seed were up in Jaipur, due to a fall in arrivals coupled with improved demand from domestic oil millers and crushers. Arrivals across the country were estimated at 80,000 bags (1 bag = 85 kg), compared with 110,000 bags on 28 Sep. Farmers are holding their produce in anticipation of a further rise in mustard seed prices. Export demand for mustard meal and seasonal demand for mustard oil in the domestic market, further supported prices.
China is expected to produce 13.1 million tonne of rapeseed in 2017-18 (Jun-May), down from 14.3 million tonne a year ago, primarily due to a decline in the acreage. China is expected to produce 13.1 million tonne of rapeseed in 2017-18 (Jun-May), down from 14.3 million tonne a year ago, primarily due to a decline in the acreage. Rising demand of the oilseed in domestic markets in China and anticipation of low production this year may boost the imports. China, a key importer of Indian rapeseed, banned the imports from the South Asian country in 2012 on quality concerns. Before the ban, China bought around 300,000 tonne of the mustard meal from India every year.
Futures contracts of mustard on the National Commodity and Derivatives Exchange rose nearly 1% due to a rise in demand for mustard meal from overseas buyers. The most active October contract of mustard ended up 0.9% from the previous close. Improved demand from domestic oil millers and crushers also supported mustard seed prices.
Prices of mustard seed were down in Jaipur due to a rise in arrivals coupled with sluggish demand from oil millers and crushers. Demand was subdued after a recent surge in prices.
Prices of mustard seed rose in Jaipur due to a fall in arrivals coupled with a pickup in demand from domestic oil millers and crushers. Higher carryover stock from 2016-17 season and start of harvesting of kharif oilseeds, however, capped gains in prices.
The country’s top mustard producing state, Rajasthan, has set a target of 3.77 million tonne output of the oilseed in 2017-18 (Jul-Jun), 4.3% lower from the output a year ago. Expecting a lower mustard output this year despite some marginal rise in the acreage primarily because of inadequate water for irrigation in key reservoirs in the state. The state faced a dry spell during most part of Jul-Aug, but rainfall has improved this month. However, water level in key reservoirs in the state continues to remain low.
Prices of mustard seed were down in Jaipur due to a fall in demand for oilcake as well as its edible oil. Sluggish export demand for mustard meal, lower demand of oil in the domestic market, and an increase in arrivals of the commodity are also seen weighing on prices. The most active October contract on NCDEX ended flat. NCDEX adds Tonk to list of mustard delivery centers.
The October contract of mustard seed on the NCDEX ended nearly 1% lower today because of expectations of higher stocks of the oilseed this season. The October contract ended at 3,744 rupees per 100 kg, down 0.9% from previous close. Inventories of mustard seed in February next year are estimated higher because of lower crushing due to sluggish exports in the oilseed year. In February this year, closing stocks of mustard seed from the old crop were estimated at 250,000 tonne.
The September contract of mustard seed hit a one-month low on NCDEX due to subdued demand from domestic oil millers and crushers. On NCDEX, the most-active October contract was down 0.16% from previous close. Higher carryover stock from 2016-17 season and start of harvesting of kharif oilseeds weigh on market sentiment. Stocking of mustard oil for consumption during Durga Puja has already been procured by traders, which has reduced demand for mustard seed.
NCDEX has marked 2,150 tonne of mustard seed, 850 tonne of cottonseed oilcake, 440 tonne of castor seed, and 255 tonne of jeera for staggered delivery in the September contract. The exchange also marked 230 tonne of turmeric, 160 tonne of coriander, 60 tonne of chana, 20 tonne wheat, and 10 tonne of barley for staggered delivery in the same-month contract.
Supply of mustard seed is seen in sufficient quantity for upcoming rabi sowing season. Mustard seed for rabi sowing is also estimated at 24,200 tonne, 2,400 tonne more than the estimated requirement.
Mustard seed prices fell in Jaipur due to a rise in arrivals, coupled with lacklustre demand from domestic oil millers and crushers. Higher carryover stock from the 2016-17 season and start of the harvest season for kharif oilseeds also creates bearishness in the market.
Mustard production projected by Statistics Canada shows a decline of almost 50 percent from a year ago. Mustard is grown mainly in southern Saskatchewan and southern Alberta, two areas hit hardest by drought. That accounts for most of the steep production decline. A smaller crop this year and low carryover stocks could send mustard prices up. Canadian mustard production is estimated to come in at 129,500 tonnes, down from 235,600 tonnes a year ago, which is a decline of 45 percent year-to-year.