Commodity Trading Tips for Mustard by Kedia Commodity

Ajay Kumar Kedia 2 August 2013

Mustard Mustard yesterday settled up 0.53% at 3199 due to fresh buying support tracking firmness in other oilseed counters. Good monsoon has resulted in to speedy sowing activities of kharif crops in the country. The export demand of oilmeals during June has improved. 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%. If monsoon rain fall continues with its persisting trend then the mustard seed production is expected to touch higher level there by pressuring the commodity prices to certain extent. 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. In the Alwar spot market in Rajasthan the price gained 26 rupee to 3378 rupees per 20kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 6.43% to settled at 68860 while prices up 17 rupee, now Mustard is getting support at 3172 and below same could see a test of 3145 level, And resistance is now likely to be seen at 3227, a move above could see prices testing 3255.