Brochures_RapeMustardSeed_28May12.pdf

8/9/2019 Brochures_RapeMustardSeed_28May12.pdf

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RAPE MUSTARD SEED



INTRODUCTIONINTRODUCTION

Mustard seeds (Brassica Napus) also known as Rape, Oilseed rape, Rapeseeds and Canola are very widely cult ivated throughout theworld. The seeds can come from three different plants: black mustard, brown Indian mustard, and white mustard. Mustard seed isthe third leading source of vegetable oil in the world after Soya bean oil and palm oil. It is world's second leading sources of proteinmeal after soybean meal. Mustard seeds oil content varies from 35% to 46%. It is the source of rapeseed/mustard seed oil andoilcake. Yellow colored oil is obtained by extraction process of the crushed rape/mustard seeds. The pressed cakes of the seeds, leftover after the production of oil are distilled to make De- Oil Cake, which serves as an animal feed.

It is basically a winter crop, requiring a temperate climate to prosper. The planting season or the sowing period in India is during theRabi season i.e. October to November. The crop starts flowering in the months of November, December, January and February. Theharvesting period is from February to March.

GENERAL INFORMATIONGENERAL INFORMATION

USES OF MUSTARD SEEDUSES OF MUSTARD SEED

Mustard seed contains 30-46% oil and this oil which is one of the most important and popular oils in India, is of two types- kacchighani and refined mustard oil.Mustard oil is widely used as medium of preservation for preparation of pickles, chutney and other preparations.

RM Meal being rich in protein and low in glucosinolate content, is used as an ingredient for cattle feed and poultry feed in India. Ithas high demand from the feed millers and is exported to various foreign and Mediterranean Countries

Mustard oil has antifungal propert ies, hence beneficial for body massage for control of skin diseases.

Mustard seeds are also used in India as well as in European countries like France, Italy as versatile spice for culinary preparations offish, meat, vegetables etc.

Mustard seed contains “erucic acid” which has immense industrial applications. 'High Erucic Acid Rapeseed' (HEAR) oil is the non- edible variety of oil, which is used for industrial purposes. The global market for low erucic acid rapeseed oil is ever increasing.

VALUE CHAINVALUE CHAIN

Country Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec

India

China

EU

Canada

Sowing Time Growth Time Harvesting

SEASONALITY SEASONALITY

Global production of rapeseed increased from 37.33 MT in 2000 to 59.38 MT in 2009. It has been growing at t he rate of 6.55% duringthe last 9 years' period (2000-2009). The major contributors to global rapeseed production are China, India, EU-27, Canada and

others with a share of 22%, 11%, 36%, 20% and 11% respectively. Consumpt ion of rapeseed in the World has increased from 31.33 MT

in 1997 to 59.16 MT in 2009, growing at a rate of 7.4 % compounded annually during the period. China has been the biggest

consumer of rapeseed. Annual export trade of rapeseed stands at around 12 MT. It has been growing at the rate of 14.23% (annually

compounded 1996-2009), major share being contributed by Canada.

GLOBAL SCENARIOGLOBAL SCENARIO

Adhatiya/CommissionAgent

Kolhu/Expeller MustardCake

Solvent Plant

SolventExtracted Oil

AnimalFeed

Refinery

Refined Oil

Consumer

Farmer

DOC



Global Production

3%

Major Trading Centers

State Trading Place

Rajasthan Alwar, Bharatpur, Kota, Jaipur, Ganganagar & Bikaner

Uttar Pradesh Hapur, Agra & Kanpur

West Bengal Kolkata & BurdwanMadhya Pradhesh Morena, Gwalior, Shivpuri

Haryana Faridabad , Bhiwani, Hissar , Mahendragarh

Punjab Ludhiana , Bhatinda , Faridkot , Fathepur Sahib

DOMESTIC SCENARIODOMESTIC SCENARIO

Mustard seed is one of the major sources of oil and meal to India. Mustard is

traditionally the most important oil for the Northern, Central and Eastern parts of

the country. The pungency of the oil is considered as the major 'quality

determining' factor. Rajasthan is the largest producer of mustard seed in the

country with a contribut ion of 54% to the country's total mustard seed

production followed by Punjab and Haryana together contributing 14%. Other

major domestic producers of mustard seed are Madhya Pradesh / Chhattisgarh

(13%) and Gujarat (7%).

Mustard seed is primarily used as a source of edible oil and protein meal, while

also being used as a condiment. The oil recovery from mustard seed ranges

between 38-44% depending upon the variety and crushing processes. The

remnant after oil extraction is used as meal for l ivestock feed. The consumpt ion of

Mustard seed as a condiment is higher in India compared to that in the world. In

India, mustard oil is consumed largely in Northern States, as cooking oil and in

Southern India, it is used for preservation of food products.



Price limits

Premium/Discount

Position limits

Due Date/ ExpiryDate

Expiry date of the contract:If 20th happens to be a holiday; a Saturday or a Sunday then the due date shall be the immediately precedingtrading day of the Exchange, which is not a Saturday

Delivery Logic Compulsory Delivery

Additional deliverycentres

Alwar (Rajasthan), Kota (Rajasthan), Sri Ganganagar (Rajasthan), Bikaner (Rajasthan),Hapur (Uttar Pradesh) & Agra ( Uttar Pradesh ) (At all centers, up to the radius of 50 km from the municipal limits) (Premium/discount for all centers will be announced at the time of launching a contract

Delivery center Jaipur (up to the radius of 50 km from the municipal limits)

Quantity variation +/- 2%

Name of Commodity Rapeseed-Mustard Seed

Ticker symbol RMSEED

Basis Ex-warehouse Jaipur, exclusive of sales taxes/VAT

Unit of trading 10 MTDelivery unit 10 MT

Quotation/base value Rs per quintal

Tick size Re. 1

Moisture content : 5% (basis)Oil Content (at 5% moisture content level): 42% (basis)FFA%: 1.5 (max)Foreign Matter: 0.25% (basis)

CONTRACT SPECIFICATIONS

For further details, please refer to the NCDEX website http://www.ncdex.comContact our Product Managers for any queries/information:

Abhishek Govilkar : 9826973045, Deepak Gupta : 9982407806, Kanahiya Nand Jha : 9350274983, Mukesh Kumar : 9875215500, Jatin Kothari : 9987333110, Priyank Jain : 9977001863, Rahul Das : 9825211548, Vineet Sharma : 9772424222,

Vishal Dinesh : 9999346054, Sebabrata Sarkar : 9434750325

Daily price fluctuation limit is (+/-) 3%. If the trade hits the prescribed daily price limit there will be a coolingoff period for 15 minutes. Trade will be allowed during this cooling off period within the price band.Thereafter the price band would be raised by (+ / -) 1% and trade will be resumed.If the price again hits the revised price band (4%) during the day, trade will only be allowed within the revisedprice band. No trade / order shall be permitted during the day beyond the revised limit of (+ / -) 4%

Quality delivery with variation shall be acceptable with premium/discount as under:

Moisture: • From 5% to 6.5% accepted at 1:1 discount or part there of • Above 6.5% rejected

Oil Content: • From 42% to 37% accepted at 1:1 discount or part there of

• More than 42% accepted at 1:1 premium or part there of• Below 37% rejected

Foreign matter: • From 0.25% to 2% accepted at 1:1 discount or part there of • Above 2% rejected

• Free from non-edible seeds such as Mahuas, Castor, Neem,Taramira and Argemone seeds.Should be free from any foul odor.

Member-wise: 125,000 MT or 15% of Market open interest whichever is higherClient-wise : 25,000 MTFor near month contracts :The following limits would be applicable from 28 days prior to expiry date of a contractMember: 35,000 MT or 15% of the market-wide near month open position, whichever is higherClient: 7,000 MT

Various supply-demand factors revolving around the global edible oil scenario The seasonal nature of the production Its high susceptibil ity to natural fallacies Wide consumpt ion of its derivatives (oil and meal) The nature of t he existing supply

Value chain Participants activities

The present dependence on the other edible oils

The ups and downs in production estimates declared by Govt., SEA, MOPA

International prices of other oilseeds and oils

The presence of a large unorganized crushing sector

Stocks available at Exchange Warehouse

Final Expiry date (FED) of the Stocks available at Exchange Warehouse

FACTORS AFFECTING MUSTARD/RAPE SEED PRICESFACTORS AFFECTING MUSTARD/RAPE SEED PRICES

Brochures_RapeMustardSeed_28May12.pdf

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