Mustard seed futures drop on rising stockpiles

Mustard seed prices fell by Rs 40 to Rs 4,038 per quintal in futures trade today as participants trimmed holdings amid soaring stocks in the spot markets.

At the National Commodity and Derivatives Exchange counter, mustard seed delivery for the first contract slipped by Rs 40, or 0.98 per cent, to Rs 4,038 per quintal with an open interest of 1,06,390 lots.

Likewise, the delivery of October contract slackened by Rs 39, or 0.94 per cent, to Rs 4,107 per quintal with an open interest of 30,180 lots.

According to marketmen, the down tick in mustard seed futures prices was mainly due to mounting stocks amid persistent arrivals from growing regions and weak demand in the spot markets.