Mustard futures dropped three per cent for all contracts on Monday on better prospects of rabi sowing and a general downtrend in commodities across the globe.
Mustard, a rabi crop, could see improved sowing this year in view of better prices and higher soil moisture as a result of rains in August and September.
Though mustard production has been estimated to be lower this year as also the carryover stocks, the industry is of the view that the situation is under control.
Worldover, the oilseeds counter is witnessing a bearish trend in view of hopes of better-than-expected soyabean harvest in the US. On the other hand, palm oil stocks in Malaysia, currently over two million tonnes, could rise to over three mt by the end of the year.
This is mainly slow economic growth affecting demand. Traders and speculators are also of the view that oilseeds counter have run up too sharply.
Profit-booking on bearish outlook has resulted in oilseeds counter dropping about 20 per cent in the last three weeks or so.
On the National Commodities and Derivatives Index, mustardseed for delivery in October dropped 3.43 per cent or Rs 140 to Rs 3,942 a quintal.
November contract dropped by 3.34 per cent to Rs 3,990, while December contract was lower by 3.32 per cent at Rs 4,020. Mustardseed for January delivery ruled at Rs 4,050, a fall of 2.97 per cent.
In the spot market at Jaipur, mustardseed was quoted lower at Rs 4,275.