Commodities

Mustardseed may top Rs 4,500 a quintal

Our Correspondent Indore | Updated on July 12, 2012 Published on July 12, 2012

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Even as monsoon has slowed in Madhya Pradesh with the State receiving no rains for the last 2-3 days, mustard seeds and oil continue to gain higher on strong buying support, particularly from the pickle manufacturers. Similarly in Neemuch and Moorena mandis of Madhya Pradesh, mustard oil has gone up to Rs 795 for 10-kg (up Rs 20) and Rs 805 (up Rs 30) on strong buying support.

In Rajasthan mandis also, mustard oil ruled higher on strong demand and decline in arrivals with its prices in Kota and Ganga Nagar (Niwai) being quoted at Rs 800 (up Rs 35) and Rs 805, up Rs 40 in the one week. In Jaipur, mustard oil in the past one week, has gone up by Rs 30 to Rs 815 on Thursday, while in Gujarat it ruled at Rs 795 (up Rs 20).

Contrary to physical market, mustard futures declined marginally on weak foreign with July and August contracts on the NCDEX being quoted at Rs 777.14 (down Rs 4.55) and Rs 785.80 (down Rs 4.15).

According to Mr Vijay Kumar Jain, a Neemuch-based trader, mustard oil could be bullish next week before the next monthly cut on the NCDEX.

On the other hand, bullish trend also continued on mustard seeds with demand outstripping arrivals. In Indore mandis, mustard seeds ruled at Rs 4,250-4,300 a quintal (up Rs 150), while in Neemuch, mustard seeds ruled higher at Rs 3950-4,000 a quintal (up Rs 100-150). However, compared with prices in the physical market, mustardseeds futures traded lower on weak buying support with July and August contracts on the NCDEX closing at Rs 4,158 (down Rs 14) and Rs 4,207 a quintal (down Rs 23). With higher demand from the crushers, plant deliveries in mustard also ruled higher with its price for Jaipur line being quoted at Rs 4,160-4,180 a quintal. Traders expect mustardseeds prices to touch Rs 4,500 a quintal mark in the coming days with farmers holding up their stock anticipating higher returns in the coming days.

As a result of this arrival of mustard in mandis across country declined to 68,000 bags with Rajasthan witnessing an arrival of 42,000 bags followed by Madhya Pradesh, Uttar Pradesh and Punjab where arrival was recorded at 5,000 bags each, while Gujarat recorded an arrival of 4,000 bags and remaining 8,000 bags were offloaded elsewhere in the country.

Published on July 12, 2012
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