Mustard seed futures shrugged off by almost 2% in the last one week due to weak export demand of mustard meal along with restricted demand by oilmillers at elevated levels.
Traders stated that the sluggish export demand added some selling in mustard seed market. As per the latest release from The Solvent Extractors' Association of India , the total exports of mustard meal was reported at 2.54 lakh tonnes during the April- July 2012 against 4.94 lakh tonnes that were reported in the last year in the same period. This is mainly due to waning export demand from Vietnam and Japan.
Moreover , traders mentioned dearth of offtake by millers at higher levels might witness some selling in both spot and futures market. However, total daily arrivals were still reported at lower side in the range of 70000-75000 bags due to weak production estimates in the current year.
Consequently, the NCDEX September mustard seed futures declined by almost Rs 98 per quintal in the last week to trade at Rs 4403 per quintal. Technically, prices are likely to trade in the range of Rs 4220-4460 per quintal in the near term.
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