The mustard seed futures staged a strong rally on Saturday on emergence of fresh buying in the futures market based on strong fundamental factors.

Lower production estimates and lower-than-expected arrivals to the spot market supported the rally.

The most active April contract RM seed futures made an intraday high of 500.90 levels from a low of 492.30 levels and settled at 498.10 levels.

Outlook

The mustard seed futures are projected to trade on a positive note during the day on account of follow through buying in the futures market and taking cues from firm spot market sentiment.

The spot mustard seed is trading at Rs.495-500 per 20 kg due to lesser arrivals to the spot markets. The SEA rapeseed-mustard crop survey team has estimated India’s mustard seed crop at 59.20 lakh tonnes against 62 lakh tonnes produced last year. The open interest fell by 0.15% to 88040 tonnes from 88170 tonnes and volume fell by 17.12% to 54260 tonnes from 65470 tonnes.

Courtesy: Kedia Commodities

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