Expect Mustard seed to trade down: Angel Commodities
According to Angel Commodities, We expect mustard seed may trade down on there is steady demand for mustard crushing against sufficient stocks in the domestic market.
Mustard seed futures closed lower on Tuesday, as demand is not picking up from stockists and oil mill. Moreover, there is expectation of higher production in the next season, which encourage the traders to sell their stored mustard in the physical market.
The Nov’16 contract ended 0.49% down to settle at Rs. 4,511/quintal. The country's production of rapeseed is expected to increase by 12.5 % to 6.3 mt from a year earlier. The demand for mustard may pickup in physical market due to approaching winter.
As per the latest USDA monthly report, global rapeseed production for 2016/17 is forecast at 67.6 mt, up from 66.9 mt last month and down 3 % from 2015/16. Larger crops are expected from Canada, Australia, and the United States offset a slight decrease for Russia. There are widespread showers in Europe, which is expected to boost rapeseed crop development after, drought prompted farmers to sow less.
We expect mustard seed may trade down on there is steady demand for mustard crushing against sufficient stocks in the domestic market. Moreover, reports of good acreage in the coming Rabi season is pressurizing the prices.