Commodity Trading Tips for Mustard by Kedia Commodity

Ajay Kumar Kedia 16 August 2013

Mustard Mustard settled down -1.32% at 3287 tracking weakness in spot demand and other oilseed counter amid good monsoon. The sluggish trend in mustard seed seen due to excessive rains in Madhya Pradesh and Rajasthan has ended with improvement in weather condition and revival of demand. Higher global production estimates for rapeseed and higher domestic oilseed acreage estimates in the current season are likely to put slight pressure on the markets. Internationally, harvesting of the rapeseed crop is expected to start in Germany this week. However, with weather getting drier to to end of rains few days back, demand for both mustard oil and seeds has gone up. Weak arrival and improved buying support have also lifted prices of mustard seeds with mustard seeds prices in Indore mandis. A reported moderation in rape mustard meal output could be a dominant factor for the sentiments. The total output of mustard seed in the country is seen at 71.50 lakh tonnes, up 12.70% on the year. The mustard seed arrivals are slipping in mandis now as the peak supplies season gets over. Overall demand in edible oils is expected to rise in coming days as festive season approaches. Market sources indicate that around 50% of the last year's crop is still available in the market. This will encouraged strong selling by stockiest at every rise in market. In the Alwar spot market in Rajasthan the price dropped -39 rupee to 3443 rupees per 20kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -2.44% to settled at 78330 while prices down -44 rupee, now Mustard is getting support at 3259 and below same could see a test of
3230 level, And resistance is now likely to be seen at 3323, a move above could see prices testing 3358.