Mustard oil ruled sluggish in Indore and other mandis across Madhya Pradesh, Rajasthan and Gujarat on slack demand. In Indore, mustard oil on Thursday declined by Rs 5 to Rs 636.

In Rajasthan mandis also, mustard oil was traded lower on weak demand and buying support with its prices in Kota and Ganga Nagar at Rs 640 each (down Rs 5), while in Jaipur it declined by Rs 5 to Rs 655.

Besides slack demand, weak global cues and rise in arrival of new soyabean aided the sluggish trend in mustard oil.

However, given expected rise in consumption ahead, any major fall in mustard oil prices appears unlikely, said a trader Kailash Agrawal, adding that with rise in consumption in the coming days, mustard oil prices may not decline beyond Rs 5-7 for 10 kg.

Mustard seeds ruled firm at Rs 4,100-4,250 a quintal (up Rs 50 from last week), while raida ruled at Rs 3,000 (down Rs 100 from last week).

Amid adequate carryover stock and rise in arrival of new soyabean, demand in mustard seeds continues to be on lower side, leading to sluggish trend in its prices.

According to Vinod Choudhary, a mustard seeds broker, any major correction in mustard seeds appears unlikely as with winter season not very far away, demand for both mustard seeds and oil are expected to go up.

Mustard seeds showed a mixed trend with its October and November contracts on the NCDEX closing at Rs 3,500 (up Rs 100) and Rs 3,546 (down Rs 3).

Plant deliveries in mustard seeds for Jaipur line were quoted at Rs 3,645-50 (Rs 3,625-30 a quintal last week) amid poor demand from the crushers.

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