RMSeed

Rise in domestic demand for Mustard Oil ahead of the Festive season along with firmness in other Oil complex kept trend Bullish for RMSeed. Prospects of improved productivity had kept short term trend down. But with rates at very low levels, traders expect some recovery in the near term as demand picks up.

 Latest WASDE reports indicate India rapeseed production projected at 6.9 million tons, down 650 thousand tons on lower area

 Demand rose for Mustard Oil amidst falling stocks ahead of the Festival season. Cool weather in growing states keep production prospects good though reports of damage to crop in some areas in Rajasthan from the recent rains supported the market sentiments. 

As per Ministry of Agriculture, Rajasthan area coverage in Rabi season 2014-15 till 24 December was 26.40 lakh ha vs 29.73 lakh ha in 2013-14. The government has set a target of 29 lakh for this year. The fall in area was due to high temperature in Oct and lack of rains. Farmer are reportedly shifting to Barley and Wheat. Crops also faced germination problem due to the high Temperature.

 Haryana area coverage in Rabi 2014-15 till 24 December was reportedly 5.25 lakh ha while it was 5.47 lakh ha in 2013-14 during this time. The reason is again the high temperature during Oct. MP area coverage in Rabi 2014-15 till 24 December was 6.46 lakh ha while it was 7.87 in 2013-14. Due to good rains in Oct and fields being unused, early sowing was possible there. UP area coverage in Rabi 2014-15 till 24 December was 11.42 lakh ha while it was 10.37 lakh ha in 2013-14 during this period. As fields this year were unused in kharif season, so farmers had sown Mustard early in UP. 

Mustard area coverage in All over India is 63.79 lakh Ha during Rabi 2014-15 and 67.00 lakh ha in 2013- 14, area coverage during Rabi 2014 -15 is lower.

As per latest reports from Oil World, the output of mustard in Europe is expected to decline near 15% to 205 lakh tons, the lowest level in past 30 years, while it was 240 lakh tons last year. There is outbreak of insects on the mustard cops in Europe, as per the Oil World report, which may reduce the yield.