Mustard

The October contract of mustard seed was up on NCDEX as investors covered their short positions after the contract hit a four-week low. The most-active October contract was up 0.8% from the previous close. Prices fell in the last six trading sessions due to higher carryover stocks of the oilseed from the 2016-17 season.

The October contract of mustard seed on the NCDEX hit a four-week low because higher carryover stocks of mustard seed from the 2016-17 season was leading to bearishness in the market. On NCDEX, the October contract was down 0.47% from previous close. Commencement of harvesting of kharif oilseeds in the country is also seen weighing on mustard seed prices.

Prices of groundnut and mustard oil fell by up to Rs 100 per quintal at the wholesale oils and oilseeds market owing to slackened demand against adequate stocks position. However, other edible and non-edible oils moved in a narrow range in limited deals and pegged at the last levels. Easing demand from retailers against adequate stocks position on increased supplies from producing belts, mainly led to the decline in groundnut and mustard oil prices.

Mustard seed prices were down in Jaipur, due to subdued demand from domestic buyers after prices hit a one-week high. In the benchmark Jaipur market, the oilseed down 20 rupees from previous close. A rise in arrivals also weighed on the mustard seed prices. Export demand for mustard meal, however, cushioned the fall in mustard seed prices.

Prices of mustard seed rose in Jaipur, Rajasthan, because of improved demand for the oil. Shortage of mustard seed in the market is also pushing prices higher. Worries of a fall in yield, following reports of damage to the crop because of infestation in key growing areas, is also seen supporting soybean prices. A rise in exports of mustard meal in August up 56% on year,is also creating positive sentiment.

Oil mills across the country crushed 450,000 tonne of mustard seed in August, down over 18% from the previous month. Crushing of mustard seeds in August was lower than 550,000 tonne in July due to lower arrivals in wholesale markets. Tepid offtake from oil millers and mustard meal exporters also slowed the pace of crushing. Since the beginning of the mustard season in February, oil mills have crushed about 3.9 million tonne of mustard seed, compared to total arrivals of 4.22 million tonne during the period.

Prices of mustard seed rose in Jaipur for the second straight day due to limited supply in the markets and improved demand from domestic oil millers and crushers. Export demand for mustard meal also supported prices.

Prices of mustard seed in Jaipur hit a three-week high up 25 rupees from previous close, due to strong demand from oil millers and crushers. The rise in arrivals is insufficient to meet the increase in demand, thereby lifting prices. Demand for mustard meal from overseas buyers is also supporting prices of the oilseed in the domestic market.

Farmers in Madhya Pradesh have adopted a new set of practices for mustard cultivation that can increase the yield of the oilseed over threefold. The state had adopted root intensification technique for mustard in ten districts on a pilot basis in the last rabi season, and average yields rose to 3.5 tonne a ha from around 1.0 tonne per ha that farmers usually got from traditional farming methods. The practice has been taken up formally only in Madhya Pradesh so far, but farmers in Rajasthan, Bihar and Odisha, too, are gradually switching to the system of root intensification in mustard. The method is labor-intensive, but the overall cost of mustard production using system of root intensification is lower, as it requires lesser quantity of seeds and chemical fertilizers. Higher yield in mustard, and consequently higher output of mustard oil, could help lower India’s edible oil imports.

Prices of mustard seed were up in Jaipur due to higher demand from crushers. Reports of a decline in mustard seed output in Canada, one of the largest producers of the oilseed, is also seen creating a positive sentiment. On the NCDEX, the most-active September futures contract of mustard seed traded up 0.5%.

Rape oil production by Ukraine large and medium-sized crushers hit a five-year low of 2.8 KMT in July 2017 that was down 71.4% from July 2016 (9.8 KMT).

Prices of mustard seeds rose in the wholesale markets of Jaipur due to an increase in demand of mustard oil during monsoon. A fall in arrivals coupled with improved demand from domestic oil millers and crushers supported prices. Export demand for mustard meal further aided the rise in domestic market.

Oil mills in the country crushed 550,000 tonne of mustard seed in July, largely unchanged from a month ago. The quantum of mustard crushed was largely unchanged in July because of absence of significant demand from oil millers. Oil mills have crushed about 3.5 million tonne of mustard seed since the start of the crushing season in February compared to total arrivals of 3.8 million tonne during the period.

Prices of mustard seed fell in Jaipur because of subdued demand from oil millers. On the NCDEX, the most-active September futures contract of mustard seed were unchanged. In Jaipur, the benchmark market, the oilseed was quoted down 20 rupees from previous close.

Futures contracts of mustard seed on the NCDEX rose over 1% because of high demand from millers ahead of the festival season. The most active September contract of mustard on the NCDEX was up 1.1% from the previous close. The demand from end user consumer rises in the northern and eastern part of the country during the festival, which may support the prices to trade higher in the near term. Prices rose also because of improved demand on the back of lean season of the oilseed. Buying has increased now, as millers fear supplies may fall further in coming days because of lean season. In Rajasthan benchmark market of Jaipur, mustard seed was up 5-10 rupees from previous close.

Prices of mustard seed rose in the benchmark market of Jaipur because of a fall in arrivals, as well good demand for the seed by millers. Arrivals across the country were at 120,000 bags (1 bag = 85 kg), down from 140,000 bags. Demand for the commodity from consumers was good.

Seasonal demand for mustard oil has lifted seed prices to a four-month high in Jaipur, the benchmark market for the oilseed. Demand for mustard oil increases during rainy season, thereby improving demand for the seed. A fall in arrivals coupled with improved demand from domestic oil millers and crushers also supported prices.

Prices of mustard and cottonseed oils rose by Rs 50 per quintal at the wholesale oils and oilseeds market today due to pick up in demand from Vanaspati millers. Castor oil, in the non-edible section, also strengthened on increased offtake by consuming industries. Rising demand from Vanaspati millers and retailers against restricted supplies from producing belts, mainly led to the rise in mustard and cottonseed oil prices.

Futures contracts of mustard rose on NCDEX because of firm trend in prices of its substitute, soy oil. Most active October futures contract of mustard on NCDEX ended up 0.8% from previous close. Soy oil and mustard oil prices moves in tandem as, both are used as vegetable oil. Soy oil prices are rising on expectations of lower soybean output in key growing areas of Maharashtra and Madhya Pradesh due to deficient rainfall.

Mustard seed prices rose in futures trade following raising of bets by participants, bolstered by brisk demand in spot markets amid tight supplies. Apart from restricted arrivals from growing belts, strong demand for oil mills in spot markets mainly lifted mustard seed prices in futures trade here.