Mustard seed prices remained higher in line with soybean prices as domestic market prices surged. Edible oil demand ahead of the local festivals kept prices in upswing along with prevailing demand for the mustard meal.
Spot prices increased by `50-80/quintal along while arrivals averaged around 30000 bags last week.
Projection estimates declined by 10% which cushioned steep rise along with the rally in soy complex. Weak supply projections of edible oilseeds kept the prices of mustard also in upswing.
Outlook:
Mustard seed prices might be lower initially while it might recover from lower levels as the week progresses. Initially waning demand for edible oils and mustard meal might keep prices under pressure.
Severe cold weather conditions across rajasthan regions are not supporting the crop which might support the price. Overall acreage is lower by 4 lakh hectares during current Rabi sowing season which is majorly contributed from rajasthan regions.
As per trade sources, production estimates are declined to 5.5 million tons compared to 7 million tons last time. Lower carry forward stocks of mustard during current crop year are supportive for prices to recover.
Courtesy: Karvy Commtrade Ltd.
