A bullish trend in mustard oil came to a halt on Thursday as demand fell at the higher price.
In Indore mandis , mustard oil was unchanged at Rs 697 for 10 kg. In Neemuch it ruled at Rs 690, in Moorena at Rs 705, in Jaipur at Rs 730, in Kota and Gangangar at Rs 710 and in Gujarat at Rs 690. Mustard oil had been ruling high for the past few days as carryover stocks fell and buying support improved. Besides, strong global cues had also aided the bullish trend.
In the past week, mustard oil rose by Rs 7 for 10 kg in Indore, by Rs 5 in Moorena, by Rs 8 in Neemuch and by Rs 10 in Gujarat. On the other hand, it dropped by Rs 5 each in Jaipur, Kota and Ganganagar.
Seen bearish till march
According to Mr Vijay Kumar Jain, a crusher from Madhya Pradesh, mustard oil may remain bearish till March-end as arrivals of mustard seeds mount, but in the long run it will be bullish as sowing in the country has dipped by about 12.3 per cent.
He said there has been a substantial decline in sowing in Rajasthan and Madhya Pradesh, major mustard-growing States, primarily because of late departure of monsoon in the region. Besides, farmers also switched to other cash crops for higher returns and for fear that blue bulls will damage mustard crops.
Mustard seeds ruled high in Madhya Pradesh mandis at Rs 3,050-3,075 a quintal. With decline in carryover stock and yield in the current harvesting season, mustard seeds have gone up by Rs 250 a quintal, highest gain of the season. Around 6,000 bags arrived in Neemuch and Mandsaur.