Slack demand and poor buying support have reigned in mustard oil prices further in the past one week.
Though local mandis remained closed on Thursday, mustard oil in Indore mandis is currently ruling at Rs 777 for 10 kg (down Rs 5 from last week).
Similarly, it is ruling at Rs 770 in Neemuch and Rs 780 in Moorena mandis (down Rs 5 from last week).
In Rajasthan and Gujarat mandis also, mustard oil is ruling low with its price in Kota mandi currently being quoted at Rs 780, while it is Rs 775 in Shree Ganga Nagar (down Rs 10 from last week) and Rs 795 in Jaipur (down Rs 5 from last week).
In Gujarat also, it is ruling low at Rs 795 (down Rs from last week).
Demand in mustard oil at higher rate has declined leading to sluggishness.
However, any major fall in prices in the coming days appears unlikely given the decline in domestic stocks in mustard and increased demand during the winter season.
Mustard may witness a bearish sentiment if crop estimates turn out to be favourable in December indicating higher yield compared with last year.
Mustard seeds are currently ruling at Rs 4,500-4,600 a quintal, while raida is ruling at Rs 4,000-4,100.
According to Vinod Choudhary, a trader, mustard seeds appear to remain range-bound with a fluctuation of Rs 50-100 a quintal at least for a month before new crop estimate for mustard comes out in December this year.