The mustard seed futures saw a sharp recovery from its recent weakness on account of short covering coupled with fresh speculative-led buying at lower levels.

Positive trend in soy market gave underlying support to the mustard seed market.

The most active April contract RM seed futures made an intraday high of 480.40 levels from a low of 471 levels and settled at 477.70 levels, gaining by 1.39%.

Outlook

The mustard seed futures are projected to trade on a positive note during the day on account of speculative-led buying and taking cues from firm overseas market. Bargain buying is seen in the spot market following limited supply of the produce. The spot mustard seed is trading at Rs.480-485 per 20 kg. 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 13.81% to 93870 tonnes while volume surged by 101% to 79700 tonnes.

Courtesy: Karvy Commtrade Ltd.

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