<b>Commodity picks:</b> 6 February, 2017

Mustard seed
 
Mustard seed prices at Jaipur spot markets are trading at Rs 4,160 per quintal. Prices could head towards Rs 4,100 in the current week and move below Rs 4,000 in the medium term. Negative crush margins and prospects of a 15.4 per cent year-on-year increase in production to 6.78 million tonnes may keep prices under pressure in near term.
 
Sugar
 

Prices have been on an uptrend in recent weeks on rising concerns over production. Output in Maharashtra and Karnataka is likely to be lower by 45-50 per cent year-on-year due to lower cane availability. Prices at Kolhapur are trading at Rs 3,917 per quintal and are expected to rise towards Rs 4,000. However, if the government removes the import duty, then prices may trade range-bound. Currently, import duty on sugar is at 40 per cent.

  Prerana Desai,

VP-Research -Edelweiss Agri Services and Credit, Edelweiss Agri Value Chain