Downtrend in mustard oil continued in this week as well with decline in buying support at higher rate.
In Indore mandis mustard on Thursday ruled at Rs 762 for 10 kg (down Rs 13 from last week), while it ruled at Rs 770 in Morena (almost same as that of its price last week) and in Neemuch, it ruled at Rs 755 (down Rs 25 from last week). Downtrend in mustard oil continued in Rajasthan and Gujarat mandis as well.
In Kota, mustard oil ruled at Rs 768 for 10 kg (down Rs 12 from last week), while it is down Rs 10 each in Ganaga Nagar and Jaipur from last week at Rs 770 and Rs 785 respectively.
In Gujarat mandi also, mustard oil is down Rs 10 from last week at Rs 760.
According to a trader, Kailash Agrawal, bullish trend in mustard in near future appears unlikely on weak buying support and slack demand.
As compared to soya and other oil, mustard oil is ruling quiet higher in local mandis
Sluggish sentiment also prevailed in mustard seeds amid prospect of higher yield this year.
In the past one week, mustard seeds by and large remained stable at Rs 4,500-4,600 a quintal, so was raida which also ruled flat at Rs 4,000.
Mustard seeds in the futures traded lower on weak buying support with mustard seeds December and January contracts on the NCDEX closing at Rs 4,098 a quintal (down R 24) and Rs 4,166 (down Rs 18).
Plant deliveries in mustard seeds also ruled lower at Rs 4,365-70 against Rs 4,410-35 last week.
Besides rise in sowing area, dip in temperature in major mustard growing states such as UP, MP Rajasthan and Haryana, may increase crop output this year to 63-65 lakh tonnes against 55 lakh tonnes last year.
Prospect of higher production will likely to support bearish sentiment in mustard in near future, said a trader.
Arrival of mustard seeds in the country on Thursday declined to 66,000 bags with 4,000 bags being offloaded in Madhya Pradesh, 6,000 bags in Uttar Pradesh, 40,000 bags in Rajasthan, 8,000 bags in Punjab and Haryanan, 2,000 bags in Gujarat and remaining 6,000 bags elsewhere in the country.