Downtrend in mustard oil continued on weak demand and slack buying support both in the spot and futures. In the past one week, mustard oil in Indore mandis has dropped by Rs 36 to Rs 726 for 10 kg. It was Rs 720 (down Rs 35 from last week) in Neemuch and Rs 730 in Morena (down Rs 40). Steep decline in futures and strong buying support in super palmolein oil have also added to the sluggish trend in mustard oil, said a trader.
According to traders, the bearish trend is likely to continue in the coming days with rise in arrival of soya seeds and weak demand in soya oil . Super palmolein oil is currently ruling at Rs 615 which would further fuel the sentiment.
Downtrend also continued in mustard seeds with stockists releasing existing stock on the hopes of better crop prospect in the coming season. In Indore mandis, mustard seeds on Thursday ruled at Rs 4,300-4,400 a quintal, while it was Rs 3,400-3,500 at Neemuch (down Rs 300 from last week).
Similarly, plant deliveries of mustard seeds for Jaipur line also declined to Rs 4,010-4,040 a quintal on weak demand from crushers. October and November contracts on the NCDEX closed at Rs 3,737 ( up Rs 25) and Rs 3,795 a quintal (up Rs 30) respectively. Arrivals were recorded at 63,000 bags in the country with a break-up of 33,000 in Rajasthan; 4,000 bags in Madhya Pradesh; 6,000 in UP; 7,000 in Punjab; 3,000 in Gujarat and 10,000 bags elsewhere in the country.