The January contract of mustard seed rose on the NCDEX as investors covered their short positions after prices hit a near-two-month low. The January contract was at 3,961 rupees per 100 kg, up 0.5% from the previous close. Prices had fallen in the past two trading days due to lacklustre demand from oil millers. Lower mustard acreage this year further supported prices of the oilseed.
Rape oil production by Ukraine’s large and medium-sized crushers fell to a four-year low of 0.131 KMT in November 2017. Nonetheless, the results of the first five months of MY 2017/18 are 33.8% higher than a year ago: 79.1 KMT against 59.1 KMT, respectively.
Since the beginning of MY 2017/18, export of Ukrainian rapeseed reached 1.9 million tons. The State Service of Ukraine on Food Safety and Consumer Protection reports that rapeseed exports over this period increased by 54.2% compared to the same date of MY 2016/17 (0.87 million tons). Compared to the same date of MY 2016/17, the volume of soybean exports for the reporting period did not change and amounted to 1.2 million tons. Earlier it was reported that Ukraine in January-November 2017 exported 64.18 thousand tons of rapeseed oil for USD 51.64 million.
Prices of mustard seed rose in Jaipur, the benchmark market, due to improved demand from crushers. Worries over lower acreage this season are also seen creating positive sentiment. The most active January futures were up 1.2%.
Rajasthan Khadya Padarth Vyapar Sangh urged the Centre to remove mustard from the purview of goods and services tax to boost production and restrict imports of mustard oil. Since Rajasthan is the country’s largest grower of mustard, the current 5% GST on the oilseed make its trade less attractive, and may eventually hit the output. Owing to GST of 5% on sugar, consumers have to bear a tax burden of 200 rupees per 100 kg. The mandi cess of 1.60% adds an additional burden of 65 rupees on the consumers.
Prices of mustard fell in benchmark Jaipur market amid high inventories and steady arrivals. Arrivals across the country were pegged at 145,000 bags (1 bag = 85 kg), unchanged from the previous day. Futures contracts of mustard also fell on the NCDEX, tracking the decline in spot rates. Worries of lower acreage this season are, however, seen cushioning the fall in prices.
Prices of mustard seed rose in Jaipur, the benchmark market, as arrivals of the oilseed declined marginally during demand from crushers. Worries of lower acreage this season is also seen creating positive sentiment.
Rapeseed lose ground as a crop in the European Union in the next decade as biofuel demand wanes and other oilseeds capture more growth from edible oil and livestock feed markets. A sharp decline in the rapeseed area, to around 6 million hectares by 2030-31 versus an average 6.5 million in the past five years, would outweigh improving yields and push down production. Farm-level rapeseed production was projected to decline to 20.7 million tonnes by 2030-31. The EU produced an estimated 21.7 million in the current crop year.
The Bulgarian Ministry of Agriculture has increased the country’s 2017-18 rapeseed production forecast by nearly 6% from an estimate earlier this year, to 460,000 tonnes, due to higher yields. Average rapeseed yield in Bulgaria has risen to 2.84 tonnes per acre from the previous estimate, but that is still 3.7% lower than the average yield in 2016-17, when total rapeseed production was 509,000 tonnes.
The National Commodity and Derivatives Exchange has withdrawn the circular that said spot polling price of mustard shall be arrived at, after considering a discount of 1%. The discounted polled spot prices were supposed to be applicable from Feb 5 for contracts expiring in April and thereafter.
Prices of mustard seed fell slightly in Jaipur, the benchmark market for the commodity, because of sluggish demand for edible oil. The most active January futures on the NCDEX were down 0.7%.
Prices of mustard seed were slightly down in Jaipur because of sluggish demand for the oilmeal from the cattle feed industry. The most active January futures on the NCDEX were down 0.3%.
Mustard seed prices were higher by Rs 23 per quintal in futures trade on accumulation of positions amid higher physical sentiments. Marketmen attributed the uptick in mustard seed futures prices to pick-up in demand for oil mills amid tight arrivals from producing belts in physical markets. NCDEX mustard seed delivery for December contracts advanced 0.58 per cent.
The January futures contract of mustard seed on NCDEX rose as investors covered their short positions after prices hit a three-week low. The most active January contract on NCDEX was up 0.7%. Lower mustard acreage this year also supported prices.
The Agrimet division of the India Meteorological Department has advised mustard farmers in Rajasthan to spray pesticides to control the spread of aphids. The pest destroys the growth the plant and hits yield. Rajasthan is the top mustard producing state in the country. The state’s mustard acreage was at 2 mln ha as of Nov 30, down 26% from a year ago.
Mustard seed traded lower by 0.60 per cent in futures trade as speculators offloaded holdings in line with a weak trend at the physical markets. The most-active delivery in January month contract also fell by 0.42 per cent.
Prices of mustard seed fell in the key wholesale market of Jaipur, Rajasthan. Despite lower acreage under the crop in 2017-18, higher carryover stocks of the seed in the local market are seen weighing on the sentiments. The most active January contract of mustard seed on the NCDEX traded down 0.7% taking cues from the spot market.
Abares raised its estimate for Australia’s 2017-18 canola crop by 100,000 tonnes to 2.85m tonnes, citing an improvement to prospects in Western Australia, which more than offset the setbacks in New South Wales from extremes of excessive wemetric tonneess, following on from drought.
Mustard oil mills across the country crushed 475,000 metric tonne of the oilseed in November, up nearly 6% on month. Crushing rose in November due to higher arrivals in wholesale markets. Farmers liquidated stocks to raise money for rabi sowing. Since the beginning of the crushing season in February, oil mills have crushed about 5.3 million metric tonne of mustard seed compared with the total supply of 5.4 million metric tonne.
Mustard production by large and medium-sized plants of the fat-and-oil industry grew to 828 MT in October 2017, or 14% more than in the previous month (725 MT) and up 32.5% from October 2016 (625 MT). Production amounted to 6.7 KMT in January-October, or up 15% year-on-year (5.8 KMT in January-October 2016).