The mustard seed futures declined sharply yesterday on emergence of fresh selling pressure in the futures market.
Weak trend in soy complex market also had a bearish impact on the mustard seed market. Traders sold futures on speculation that arrivals will improve in the coming days as the harvesting is progressing well.
The most active April contract RM seed futures made an intraday low of 469.45 levels from a high of 477.10 levels and settled at 471.30 levels, declining by 1.18%.
Outlook
Mustard seed futures are expected to trade on a negative note during the day on follow through selling backed by weak fundamental factors.
Improvement in harvesting of the crop and its flow to the spot markets is likely to weigh on the market.
The spot mustard seed is trading at Rs.480-482 per 20 kg. The SEA rapeseed-mustard crop survey team has estimated India’s mustard seed crop at 59.20 lakh tonnes against 62 lakh tonnes produced last year.
The open interest increased by 2.34% to 109110 tonnes while volume increased by 199.62% to 87130 tonnes. The rise in volume and open interest along with fall in the price is indicating further weakness in the price.
Courtesy: Karvy Commtrade Ltd.
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