Mustard seed prices declined in line with soy complex on Tuesday. Good demand for edible oil is reported across major spot markets.
Fresh arrivals were gaining momentum across major spot markets which added to the weakness in prices.
Outlook:
Mustard prices could register gains to day inline with the soy complex. Weather over southern china is reported to be very bad for rape seed crop which could affect market sentiments of mustard and support gains.
Despite fresh crop arrivals stockists are keen on accumulating in anticipation of lift in ban on Indian meal imports by china. Panel of members from china are visiting India to check the crushing technologies and possibly remove ban on Indian oil meal imports.
We feel that ban also could be removed as soon as possible as world wide supplies of oil meal could be lower during 2012 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.
Courtesy: Karvy Commtrade Ltd.
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