In NCDEX Coriander February contract is trading at Rs.3947 per quintal, down by 3.98 per cent in the afternoon session against the previous close.
In the morning session the contract traded at a range of Rs.3947-4123 per quintal. Open interest of the contract is 15260 lots and volume traded is 4630 lots for the time being.
We feel major contributor for lower production estimates could be mustard as the sowing was lagging by 4 lakh hectares. Panel of members from china are visiting India to check the crushing technologies and possible remove the ban on Indian oil meal imports.
We feel that ban also could be removed as soon as possible as the world wide supplies of oil meal could be lower during the year and china could not afford to loose out on imports from India as their demand is increasing at faster pace.
Production estimates are still around 65 lakh tons compared to 70 lakh tons last year. Solvent Extractor’s Association survey is due during this might which would project clear estimates for mustard production for 2012.
