Mustard/ rapeseed futures settled lower in futures after data showed lower rapemeal exports. On the NCDEX, August contracts slipped by Rs 8 to Rs 4,329 a quintal, while the September and October contracts were quoted at Rs 4,378 (down by Rs 31) and Rs 4,435 (down by Rs 32) respectively.

In the past one week, the mustard counter has either ruled stable or declined marginally on weak futures and slack buying support on account of a change in weather conditions. With a decline in stocks and a drought-like situation in many States, both stockists and speculators had pushed up prices to record levels.

However, recent showers and the Centre’s move to rein in soaring prices in the futures has dampened trading sentiment among speculators, leading to a decline in mustard oil prices in the past few days.

According to a circular issued by NCDEX, the existing special cash margin of 5 per cent on the long side will be increased to 15 per cent on all the running and yet-to-be-launched contracts beginning July 18.

Mustard output this season has declined significantly and deficient rains in key producer, Rajasthan, would not provide proper moisture for mustard sowing next season. Traders expect the demand for mustard oil to pick up in the coming winter and delayed arrival of the soya crop would keep the downside restricted.

In the spot market at Jaipur (Rajasthan), mustard seed was quoted at Rs 4,467.5 a quintal.

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