Commodity Trading Tips for Mustard by Kedia Commodity

Ajay Kumar Kedia 23 August 2013

Mustard Mustard yesterday settled down -1.05% at 3403 tracking weakness in spot demand on profit-taking driven by higher stocks. Improved Festive season demand in mandis too supported the market sentiments. There are reports that Production of rapeseed, the most common crop used in biodiesel in the European Union, may jump to a record 66.4 million metric tons, U. S. Department of Agriculture data show. Stockpiles of rapeseed oil globally will rise 18 percent to an all-time high of 3.12 million tons in 2013-14. A reported moderation in rape mustard meal output could be a dominant factor for the sentiments. Rape Mustard oil prices in Sri Ganganagar have slipped to their two and half-month low amid a massive correction in entire edible oils pack. According to COOIT', 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 major mandies 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. 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. In the Alwar spot market in Rajasthan the price gained 45 rupee to 3552 rupees per 20kgs. Now Mustard is getting support at 3369 and below same could see a test of 3335 level, And resistance is now likely to be seen at 3451, a move above could see prices testing 3499.