Mustard seed - Agriculture commodities

Mustard seed Trading in India

Mustard seeds obtained from mustard plants which is a cruciferous vegetable related to broccoli, Brussels sprouts and cabbage. Its Botanical Name is "Brassica Juncea". Mustard is also known as Rai, Sarson and Rapessed. These are small round seeds usually about 1 or 2mm in diameter. Mustard seeds may be colored ranging from yellowish white to black. It is a rich source of oil and protein.

What makes Mustard seed good investment?

• Mustard seed is used as vegetable oil. In 2000, according to the U.S. Dept. of Agriculture, rapeseed is the third leading source of vegetable oil.
• Mustard is also used for animal feed and biodiesel.
•  Mustard seed is one of the largest protein meal source in the world

Why is Mustard seed a wise investment for an Indian trader?

•    India is the fourth largest producers of Mustard in the world.
•    India produces 5.5 million MT to7 million MT annually. India is the largest edible oil consumer in the world. This makes Mustard prices very vulnerable to changes in Indian demand and supply.
• Efforts are being made both by the Government of India and the industry associations to increase production of this vital source of edible oil and meal.
•  Mustard futures contract was launched on NCDEX platform on February 2004 and has witnessed considerable volatility since its launch.
• Good availability in physical markets provides cash and carry opportunity to arbitragers. It serves as a hedging platform for the Producers and Exporters. 
• RMSEED futures are ideal for price risk management needs of the processors, traders, physical participants and end users. 
•  Mustard contract is highly liquid and provides easy entry and exit to a speculator. Thus the Mustard contract provides space for every investor category.