Mustard seed futures are likely to remain buoyant in the near term due to receding stocks in physical mandies along with waning crop prospects for the coming season. Traders are expecting Rs 4500-4600 per quintal in the coming months.
Traders estimated that the total availability of mustard seed in major mandies is reported at 30 lakh tonnes for the next 7 months ( August -February ) against the total demand of 34-35 lakh tonnes ( estimating 4-5 lakh tonnes of monthly crushing demand). Therefore , scarcity in mustard seed supplies in the major mandies might incite strong gains in both physical and futures market.
Moreover, poor rainfall condition in major mustard seed producing states such as Rajasthan , Gujarat and Uttar Pradesh during the monsoon season might reduce the moisture from the soil and this might also reduce the overall productivity in the coming season.
The spot prices of mustard seed in Jaipur mandi were trading at Rs 4250-4300 per quintal in today's trading. Traders are estimating that the prices will reach Rs 4500-4600 per quintal in the coming days.
Powered by Commodity Insights