The bullish trend in mustard oil, seen for the past few days on strong global cues and rise in demand from pickle manufacturers, seems to have come to an end. On Thursday, mustard oil in all mandis across the country ruled stable on slack demand and buying support.
In Indore, mustard oil ruled flat at Rs 752 for 10 kg, while it was quoted at Rs 745 in Neemuch, Rs 755 in Moorena. Similarly, in Rajasthan mandis, mustard oil ruled flat with its price in Kota being quoted at Rs 755 In Gujarat also, it was stable at Rs 745.
Mustard oil gained over Rs 20 in Madhya Pradesh and Rajasthan in the past week.
Hopes of monsoon arriving on time had revived buying interest in mustard oil, leading to a rise in its prices. However, weak global cues, delay in monsoon and sluggish trend in mustard futures have ended the rally.
According to Mr Cheeman Lal, a Mandsaur-based trader, any major drop in mustard oil prices from the current level appears unlikely, provided there is no further delay in monsoon as its arrival will further lift demand.
Mustard ruled stable on subdued demand in physical market, even as mustardseeds futures declined on the NCDEX on weak buying support. In Indore, mustard seeds ruled at Rs 3,700-3,750 a quintal, while it was Rs 3,500-3,600 in Neemuch. In Jaipur, mustard seeds , however, declined by Rs 50 at Rs 3,850 on slack buying support in physical market. Plant deliveries in mustard for Jaipur line was quoted at Rs 3,850-70.
In futures also, mustardseeds July and August contracts closed at Rs 3,829 a quintal (down Rs 20) and Rs 3,772 (down Rs 19).
According to local traders, the bearish sentiment in mustard seeds is unlikely to continue in view of depleting stocks. Arrival of mustardseeds in the country on Thursday were 88,000 bags.