A sluggish trend in mustard oil seen during the past fortnight ended on Thursday with improved buying support in Indore and Neemuch mandis. However, it witnessed a mixed trend; Indore and Neemuch prices gained Rs 5 to Rs 795 and Rs 790 respectively. . Compared with last week, mustard oil is still Rs 27 down in Indore. Similarly in Rajasthan mandis also, it was ruling Rs 20 down in Kota. The downtrend in mustard oil has been mainly due to weak demand and decline in buying interest from stockists due to adequate rainfall in Rajasthan, Madhya Pradesh, Uttar Pradesh and Punjab, where mustard is grown.Though recent showers have bolstered the prospects mustard crop to be sown from October, a sharp fall in mustard prices in the coming days is unlikely. This is given the rise in demand during winter and decline in carryover stocks, said Mr Vijay Kumar Jain, a Jawad-based mustard seeds trader. Mustard prices improved marginally in the futures market on Thursday on some buying support. But it continued to trade on the lower side in the physical market on slack demand. Prices in Indore mandis were quoted at Rs 4,400 a quintal, while it ruled at Rs 3,950-4,000 a quintal at Neemuch.
On the NCDEX, mustard September and October contracts ruled lower at Rs 4,080 a quintal (Rs 4,351) and Rs 4,119(Rs 4,450). Weak demand from crushers also dragged mustard oil plant deliveries in the past one week by over Rs 100 a quintal.
On Thursday, plant deliveries of mustard oil for Jaipur line was quoted at Rs 4260-90 a quintal against Rs 4,420-4,440 a quintal last week.
Arrival of mustard was recorded at 55,000 bags including 4,000 in Madhya Pradesh, 5,000 in Uttar Pradesh, 30,000 in Rajasthan, 5,000 in Punjab/Haryana and 4,000 bags in Gujarat.