Commodity Trading Tips for Mustard by Kedia Commodity

Ajay Kumar Kedia 30 July 2013

Mustard Mustard yesterday settled down -1.16% at 3071 due to steady sowing progress of kharif oilseeds along with comfortable supplies in local mandies. As per the latest release from Ministry of Agriculture, the total sowing acreage of oilseeds reported at 136 lakh hectares against 67.50 lakh hectares in the same time last year. This is mainly due to strong sowing progress of soyabean and Groundnut in the major producing states. Moreover, comfortable supply situation in local mandies might also result to some selling in futures market. Traders estimated that around 32-35 lakh bags of mustard seed is still available in local mandies. This will encourage strong stockiest selling at higher levels. Panic selling by the hedgers was the main reason behind this fall. Good monsoon has resulted in to speedy sowing activities of kharif crops in the country. As per latest crop estimates by Solvent Extractors Association of India (SEA), the overall mustard seed crop is estimated to increase by almost 18% from the last year to 71.12 lakh tonnes in the current year due to strong production estimates in Rajasthan and Haryana. As per the latest USDA report, China rapeseed production is projected at 13.5 million tons, up 0.9 million based on increased area and yield indicated in recently released official government statistics. After a steep decline last year, mustard oil production is likely to rise 27% in India this year due to record mustard seed production in the ongoing rabi season. In the Alwar spot market in Rajasthan the price gained 39 rupee to 3288 rupees per 20kgs. Now Mustard is getting support at 3042 and below same could see a test of 3012 level, And resistance is now likely to be seen at 3108, a move above could see prices testing 3144.