Bearish sentiment continued in mustard oil and seeds on weak global cues and sluggish demand in the physical market. Besides poor demand, strong buying support in soya oil and heavy rain in Madhya Pradesh and Rajasthan during the last few days have also dampened trading,. Mustard oil prices in Indore mandis have declined by Rs 6 to Rs 822 for 10 kg in the last one week. In Rajasthan, while it ruled stable in Kota at Rs 825, in Ganga Nagar it was quoted at Rs 828 (down Rs 2 from last week). In Jaipur also, mustard oil was ruling Rs 5 down to Rs 835, while in Gujarat, it was at Rs 815 (down Rs 5 from last week). A few weeks ago, mustard oil had shot up to as high as Rs 855. Despite the current sluggish trend, bearish sentiment in mustard oil in near future appears unlikely, given rise in demand during the winter season and depleting domestic stocks, said Vijay Kumar Jain, a Jawad-based trader.
Weak demand has also dragged mustard seeds prices in the physical market, with its price in Indore mandis at Rs 4,400-4,500 a quintal, down Rs 100 compared with its prices last week. Similarly, in Neemuch mandi also, mustard seeds were ruling low at Rs 4,000-4,100 (down Rs 100). Weak demand from crushers has also dragged down plant deliveries for Jaipur line to Rs 4,420-4,440 (Rs 4,585).
On the NCDEX, mustard seeds slipped by Rs 100 a quintal in the past one week with September and October contracts closing at Rs 4,351 and Rs 4,450 a quintal respectively.
Arrival was recorded at 65,000 bags including 5,000 bags in Madhya Pradesh, 6,000 bags in Uttar Pradesh, 35,000 bags in Rajasthan, 7,000 bags iin Punjab/Haryana, 4,000 bags in Gujarat and 8,000 bags elsewhere in the country.