Mus­tard Prices Rise 15%, Traders Won­der Why

The Economic Times - - Commodities Plus - Es­ti­mates

Like pulses, edi­ble oils too are on fire, singing the com­mon man’s wal­let af­ter two failed mon­soons. But in the case of mus­tard a rather pe­cu­liar sit­u­a­tion has emerged.

Edi­ble oils trade body Sol­vent Ex­trac­tors’ As­so­ci­a­tion (SEA) claims that the 15% rise in spot and 16.7% rise in fu­tures price over the past month is “un­jus­ti­fied”, given that this year’s crop is es­ti­mated at the up­per end of a 50-60 lakh tonne range. Even some top phys­i­cal mar­ket traders feel the same.

But, those who trade the fu­tures mar­ket are not buy­ing ei­ther’s claim and be­lieve that the crop might be be­low 50 lakh tonnes in 2015-16. “SEA stands by its fig­ure of 59.2 lakh tonnes, which is higher than last year’s 50.8 lakh tonnes, and feels the rise (in price) to be un­jus­ti­fied,” said BV Me­hta, ex­ec­u­tive pres­i­dent, SEA. Atul Chaturvedi, CEO (agri busi­ness), Adani Group, says: “The rise has been steeper than ex­pected. How­ever, price trends on the fu­tures mar­ket sig­nal oth­er­wise. The ac­tive month mus­tard con­tract on NCDEX has risen by 16.7% to Rs 4,576 a quin­tal, which is a whole­sale rate. The spot price polled by NCDEX rose 15% to Rs 4,630, a pre­mium to the near month fu­tures rate. RISE IN SPOT MUS­TARD PRICES

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.