The upside in mustard futures may remain capped owing to weakness in spot markets. Mustard oil remained sluggish on weak buying interest and rise in arrivals.
Mustard oil in Indore mandis declined by Rs 4 for 10 kg to Rs 667. In the past 20 days, mustard oil prices have declined sharply from Rs 752. Arrival of mustard seeds, too, has gained momentum, with around 5,000 bags being offloaded in Mandsaur and Neemuch in Madhya Pradesh.
Refined soy oil futures & CPO prices may trade sideways tracking sluggishness at the spot markets & selling pressure from resellers. Despite the month just having begun, retail demand remains poor in the ready market.
Stockists preferred to take deliveries of old commitments and avoided new buying.
In a recent development, as per second advance estimate, As regard to oilseeds, their output is estimated to be less at 30.52 mt this year against 32.47 mt in 2010-11.
Of which, production of soyabean and sunflower is pegged at 12 mt and 0.56 mt, respectively.
Courtesy: SMC Global
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