Commodity Trading Tips for Mustard by Kedia Commodity

Ajay Kumar Kedia 1 August 2013

Mustard Mustard yesterday settled up 1.02% at 3184 due to weak arrivals in local mandies along with strong demand of mustard oil in domestic market. As per the latest release from Ministry of Agriculture, the total sowing acreage of soybean reported at 117 lakh hectares against 101.50 lakh hectares in the same time last year. This is mainly due to strong sowing in both Madhya Pradesh and Rajasthan. Similarly, the total exports of soy meal also declined sharply in the current month. The latest data compiled by the Solvent Extractors' Association of India (SEA of India), the mustard meal exports during June 2013 is reporting at 0.96 lakh tons compared to 1.42 lakh tons in June 2013 i. e. down by 32.30%. As per the market data, the total arrivals of mustard seed have reduced to 1.50-1.60 lakh bags in the last week , down almost 0.50-0.60 lakh bags from the earlier . This was on the account of restricted supplies by farmers at lower levels. The market data suggested that farmers are currently having the stocks of around 37 lakh tonnes , while almost 8 lakh tonnes are lying in the miller's warehouses. Traders also suggested that the total supply of mustard seed in the current year is expected at
67-68 lakh tonnes against the COOIT's estimate of 71 lakh tonnes . Therefore, reduction in mustard seed crop might incite the strong demand of mustard seed at lower level. In the Alwar spot market in Rajasthan the price gained 52 rupee to 3353 rupees per 20kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 3.39% to settled at 64730 while prices up 32 rupee, now Mustard is getting support at 3157 and below same could see a test of 3131 level, And resistance is now likely to be seen at 3218, a move above could see prices testing 3253.