Mustard seed prices gained on Wednesday in line with soy complex on the Indian commodity bourses.
Spot prices of oil and meal gained marginally which supported mustard prices to stay firm.
Production estimates are currently lower and acreage is lagging by 4 lakh hectares kept the prices higher.
Outlook:
Mustard prices might witness a downs side opening while overall positive trend remains intact on concerns of lower production estimates and the lower sown area.
Production estimates for current year is lower by 10 million tons than previous estimate. Production might remain at 5.5 million tons compared to initial estimates of 6.5 million tons.
Current weather across Rajasthan regions might help crop to recover from stress while it might not compensate for the lower production estimates as drop in acreage has a stronger stance in yields.
Courtesy: Karvy Commtrade Ltd.
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