| Tapan Mishra, assistant vice-president, Ncdex, said, "We already have mustard seed as well as expeller mustard oil futures contract on our platform. With the launch of rapeseed-mustard seed oilcake we will be offering the market with a complete hedging solution on mustard complex. Rapeseed-mustard seed oilcake will be useful to millers, solvent industry and livestock feed industry." |
| Rapeseed-mustard seed oilcake futures provide good opportunity for trading as the annualised volatility is 49.03 per cent, feel traders. The commodity is mainly used by the livestock feed industry. |
| Some other commodities used by the cattlefeed industry and whose futures are already traded at the Ncdex are maize, yellow soybean meal and cottonseed oilcake. This basket provides a complete solution for price risk management for animal feed manufacturers, poultry units, milk cooperatives etc. |
| According to Ncdex contract specifications, the quality of the rapeseed-mustard seed oilcake is assessed taking various parameters such as oil content, protein, fibre, moisture content and sandilica into consideration. |
| Factors that determine the price of the oilcake are rapeseed-mustard seed production, arrival for crushing, availability and relative prices of other oilseeds, oil and cake in the domestic market. Demand from the cattle-feed industry is another factor. |
| With the new launch, the bourse aims to tap the potential of the second important edible oilseed crop in the country. Rapeseed-mustard seed accounts for nearly 30 per cent of the total oilseeds produced in the country. Also, India is one of the largest rapeseed-mustard seed growing countries in the world. |
| In 2004-05, rapeseed-mustard seed and the oilcake production was 62.5 lakh tonne and 34.34 lakh tonne, respectively. Rajasthan, Punjab, Haryana, Uttar Pradesh, Madhya Pradesh, Gujarat and West Bengal are major rapeseed-mustard seed producing states. |
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