Mustard seed spot and futures prices may rule steady to weak over the next few days mainly on the reports that crop is expected to be higher for rabi season 2009 supported by increased arrivals pressure.
Spot prices in Alwar mandi of Rajasthan have come down by Rs 2-3 to rule around Rs 443 per 20 kg on Monday over previous day while prices fell by nearly Rs 10-11 per 20 kg over the previous week.
?Daily arrivals have reached to 5 lakh bags in the Rajasthan. There are latest reports that mustard crop in the state may increase to 30 lakh tonne for current period from 19.5 lakh tonne last year,” a trader based in Alwar said.
On NCDEX platform, mustard May contracts (ex-Jaipur) were largely steady at Rs 455 per 20 kg on Monday on lack of fresh buying support.
“Rapeseed-mustard crop is expected to increase to 65.5 lakh tonne from 45.9 lakh tonne of last year thanks to increase in area and favourable weather condition,” BV Mehta, executive director of Solvent Extractors’ Association (SEA) said.
“The reduction of duty on crude soybean oil will have serious repercussion on the prices of domestic mustard-rapeseed and sunflower seed which has just been harvested and price should go down further,” he said.
The area under rabi crop season 2009 also increased to 66.20 lakh hectare from 65.5 lakh hectare in previous season, according to latest estimate made in the 30th all India seminar on rabi oilseeds crop on Sunday.
“Mustard futures prices are expected to move downward in the short term on account of arrival pressure and higher output estimates this year. Soyabean prices are also expected to decline on account of improvement in weather condition of Argentina and harvesting started in South America,” analyst with Angel Commodities said.