Mustard seeds continued their upward movement on a lower crop, an expected rise in demand and higher enquiries for its meal.

On the NCDEX, mustard seed for August delivery rose by Rs 39 to Rs 4,449 a quintal, while the September and October contracts rose to Rs 4,531 (up by Rs 44) and Rs 4,590 (up by Rs 49) respectively.

The crop output has been estimated at 55 lakh tonnes this year, 15 lakh tonnes lower than that of last year. Demand is expected to rise in the coming months as consumption of mustard oil picks up during winter. Moreover, a delay in the arrival of the soyabean crop is also fuelling the bullish trend.

Spot mustard seed prices in Jaipur, Rajasthan, also showed an upward trend at Rs 4,500 a quintal on stockists' buying and upcountry demand. Total arrivals (new and old) in Rajasthan today were placed at 32,000-42,000 bags of 85 kg each.

(This article was published on August 3, 2012)
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