A bullish trend is likely in mustardseed and mustard oil prices in the near future.

According to traders, talk of the Centre planning to increased tariff on imported edible oil, including refined soya oil and palm oil, next month has led to improved sentiment in the market.

Besides improved domestic buying support and a weaker rupee are aiding the trend.

According to Mr Kamlesh Nahta, a Neemuch-based trader, given the fact that mustardseed futures are already ruling at the lower level compared with prices a couple of months ago, the futures market could see a rally in the coming days. June contracts ruled as high as Rs 4,199 a quintal a couple of months ago. Demands is also likely to emerge from pickle manufacturers in coming months as well as for the festival season ahead.

On Thursday, mustard oil ruled firm despite mandis in Madhya Pradesh, Rajasthan and Gujarat remaining closed on account of nation-wide bandh against fuel hike.

In private trading, mustard oil either ruled firm or gained marginally. Mustard oil in all major mandis of Madhya Pradesh including Indore, Neemuch and Morena ruled at Rs 750 for 10 kg.

In the past one week, mustard oil in Indore mandis has gone up by Rs 22.

Mustard seeds also ruled firm with prices in Indore mandis being quoted at Rs 3,750-3,800 a quintal, while it was Rs 3,450-3,550 at Neemuch and Mandsaur mandis. Compared with prices last week, mustard seeds in Indore mandis have gained Rs 50-100 a quintal.

Plant deliveries for mustard for Jaipur line was quoted Rs 10-20 up at Rs 3,925 a quintal, while plant deliveries of mustard for Ganganagar and Alwar lines ruled higher at Rs 3,700 and Rs 3,949. In the futures market, mustardseeds June contracts on the NCDEX closed Rs 6 lower at Rs 3,835 a quintal.

Similarly, July contracts closed Rs 7 lower at Rs 3,903.

Despite closure of mandis, arrival of mustard seeds in the country on Thursday was recorded at 1.15 lakh bags.

Related Topics
comment COMMENT NOW