Low acreage to push Indian mustard seed prices
Wednesday, 28 November 2007
MUMBAI, Nov 27 (Reuters): Indian mustard seed futures are expected to trade higher and reach new highs this week on trailing rabi, or winter crop, acreage, and soaring international crude oil prices, analysts said.
"Sowing is in its fag end and area under the crop is still down sharply...prices will move up further on supply fears," said Shardul Sharma, analyst, Sharekhan Commodities Pvt Ltd.
Area under rabi mustardseed crop was down 26 per cent to 4.24 million hectares as on November 23, compared with the same period last year, farm ministry data showed.
Lower mustardseed output indicates higher edible oil import by India and an increase in edible oil prices. A higher crude oil price in the meantime indicates diversion of edible oil for biofuel production, boosting edible oil prices.
"Sowing is in its fag end and area under the crop is still down sharply...prices will move up further on supply fears," said Shardul Sharma, analyst, Sharekhan Commodities Pvt Ltd.
Area under rabi mustardseed crop was down 26 per cent to 4.24 million hectares as on November 23, compared with the same period last year, farm ministry data showed.
Lower mustardseed output indicates higher edible oil import by India and an increase in edible oil prices. A higher crude oil price in the meantime indicates diversion of edible oil for biofuel production, boosting edible oil prices.