Mustard seed futures scaled new contract lows in the wake of strong production estimates along with sluggish demand of mustard meal in local mandies . The NCDEX futures pared almost Rs 10 per quintal today.
As per latest report from United States Department of Agriculture (USDA ) , the total production of mustard seed in the current year is estimated at 67 lakh tonnes , up almost 2 lakh tonnes from the previous report, while the total consumption of mustard seed declined by 0.75 lakh tonnes to 68 lakh tonnes due to weak crushing demand.
Moreover, sluggish export demand of mustard meal also added some selling in mustard seed market. As per latest data compiled by Solvent Extractors' Association of India, the total exports of oilmeals during the April- December 2012 were reported at 5.61 tonnes, down 44.15% from the last year in the same period.
The NCDEX Mustard seed January futures slumped by almost Rs 10 per quintal to close at Rs 3459 per quintal. The NCDEX contract added by almost 1000 positions in open interest indicating fresh short position by traders.
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