The February contract of mustard seed hit a one-week high of 3,929 rupees per 100 kg on the NCDEX. This is because both the oilseeds are used to extract edible oils. At 1410 IST, the mustard seed contract was at 3,917 rupees per 100 kg, up 1.3% from the previous close. In Jaipur, mustard seed was sold for 4,170-4,175 rupees per 100 kg, up nearly 50 rupees from previous week. Arrivals were pegged steady at 115,000 bags (1 bag = 85 kg).However, mustard seed prices may come under pressure as traders expect arrivals of the new crop to start later this month.
The country have sown mustard across 6.87 mln ha as of previous day, up 2.8% from a year ago. Area under the crop was higher than the five-year average of 6.13 mln ha for the entire season. In Rajasthan, the top mustard producer, acreage was 2.48 mln. up 18.6% from a year ago. Bihar, Madhya Pradesh, and Uttar Pradesh also saw a rise in area under the crop. Most of the sowing is already over. yields tend to take a hit if the crop is sown after November. Mustard, which accounts for a fourth of India’s overall oilseed production, is sown during Oct-Nov and harvested from March.
Higher minimum support prices this year are also expected to boost area under the crop. The Centre has fixed a minimum support price of 4,200 rupees per 100 kg for 2018-19 (Apr-Mar) for mustard, compared with 4,000 rupees last year.The government has also set a higher output target of 8.5 mln tn for 2018-19 (Jul-Jun), compared with 8.3 mln tn harvested in 2017-18,
ICE canola futures rose for a third straight session, boosted by strength in soybeans that was fueled by renewed optimism about US-China trade talks. While trade optimism about the United States and China spilled over to canola markets, Canadian traders say they are concerned that a diplomatic dispute between Canada and China may affect canola sales. The nearby March canola contract hit resistance at an intra-day high of $486, around its 50-day moving average.March canola gained $1 to $484.20 per tonne. March-May canola spread traded 4,212 times. February Paris Matif rapeseed futures and Malaysian April palm oil futures rose.
Rapeseed prices in Europe have been supported by the trade news and also by the conditions across Europe that have led to around a 15% fall in area amongst the EU bloc, much of which remains unusually dry.