Mustard seed prices extended losses last week in line with the soy complex owing to the week demand prevailing in the spot markets. Spot prices declined from `3600/quintal to `3450/quintal across major markets due to absence of demand from meal from china.
Arrivals had increased from 40000 bags to 55000 bags towards closing of the week which further kept prices under pressure. Weather over Rajasthan regions were supportive for the crop which affected the market sentiments.
Outlook:
Mustard seed prices might open on lower side along with soy complex while down side might be limited in mustard prices.
Waning demand for edible oils in domestic markets and absence of fresh exports orders of mustard meal from china might also keep prices down side initially.
However we express doubts about cold wave conditions being supportive for mustard crop. Solvent extractors association survey during February would be estimating actual production estimates which are currently hovering from 55-70 lakh tons.
We expect production might decline to 65 lakh tons which is lower than 75 lakh tons during last year.
Courtesy: Karvy Commtrade Ltd.
