Mustard oil ruled firm in mandis across the central parts of the country and Gujarat despite subdued demand.
It ruled at Rs 792 for 10 kg in Indore mandis. In Rajasthan mandis, also mustard oil ruled . Compared with last week, mustard oil, however, is ruling Rs 5 higher in Indore and Rs 15 higher in Neemuch and Morena mandis.
Rise in mustard oil prices in the past one week has mainly been attributed to weak arrival and improved buying support. Traders said mustard oil prices are unlikely to drop sharply due to lower inventories of mustard and higher demand during winter.
Mustard could turn bearish sentiment if the sowing figures in December point to higher acreage, said a trader.
Compared to oil, mustard seeds are ruling stable for the past few days on slack demand. Currently, mustard seeds in Indore are ruling stable at Rs 4,600-4,800 for the past few days.
Similarly raida also ruled stable at Rs 4,000-4,100. In futures, however, mustard seeds traded higher on improved buying support with its December and January contracts on the NCEDX closing at Rs 4,190 (up Rs 35) and Rs 4,234 (up Rs 26) respectively.
Plant deliveries in seeds also ruled stable at Rs 4,380-4,400.