Slack demand pulls down mustard oil in M.P.

| Updated on: Apr 19, 2012
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Mustard oil traded lower in Madhya Pradesh and Gujarat on slack buying support. In contrast, it gained in Rajasthan on improved buying by millers.

In Madhya Pradesh, the oil declined by Rs 5, quoting at Rs 742 for 10 kg in Indore, at Rs 735 in Neemuch and at Rs 740 (down Rs 5) in Morena. In Gujarat, it declined by Rs 5 to Rs 740 for 10 kg. It perked up by Rs 10 in Rajasthan, quoting at Rs 760 in Ganganagar, at Rs 755 in Kota and at Rs 770 for 10 kg in Jaipur.

Traders, however, have ruled out any bearish sentiment in mustard oil as buying is expected to pick up at the lower levels. On the other hand, mustardseed futures that have crashed by Rs 200-250 a quintal in the last three days, gained on buying support. April and May contracts closed at Rs 3,848 a quintal (up Rs 40) and at Rs 3,919 a quintal (up Rs 64).

In Indore mandis, mustardseed ruled at Rs 3,600 a quintal, in Neemuch it was quoted at Rs 3,200-3,325 a quintal, while it ruled at Rs 3,450-3,550 in Mandsaur. Plant deliveries of mustard seeds ruled at Rs 3,840-3,850 a quintal.

According to Mr Kamlesh Nahta, a Neemuch-based trader, mustardseed that traded lower in the physical market due to decline in futures, may gain Rs 100-150 a quintal after the monthly cut on the National Commodity and Derivatives Exchange on Friday. Moreover, poor arrival of 2,000-2,200 bags in Neemuch and Mandsaur mandis on Thursday will keep it bullish, Mr Nahta said.

Published on March 12, 2018

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