Commodity Picks: May 27, 2019

Mustard prices are expected to head towards Rs 4,175-4,200 per quintal

Mustard Seed

Mustard seed is trading at Rs 4,100 per quintal at the benchmark Jaipur markets. Strong demand from processors due to positive margins and low availability in free market due to robust government procurement would keep the near term trend firm. Prices are expected to head towards Rs 4,175-4,200 per quintal. 

Chana

Chana prices have been moving up on the back of aggressive government procurement and concerns over poor monsoon. This trend could continue and prices could move higher from Rs 4,750 in Delhi market towards Rs 4,850. However, the upside is unlikely to sustain and we could see a gradual decline in the medium term once the government starts liquidating old stocks.

Prerana Desai, Research Head - Edelweiss Agri Services and Credit