Commodity Trading Tips for Mustard by Kedia Commodity

Ajay Kumar Kedia 26 August 2013

Mustard Mustard settled up 0.61% at 3443 as improved festive season demand in mandis supporting prices. Overall sentiments are expected to remain slight firm as good improved physical market buying has 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. Higher global production estimates for rapeseed and higher domestic oilseed acreage estimates in the current season are likely to put slight pressure on the rapeseed markets. Internationally, harvesting of the rapeseed crop is expected to start in Germany this week. 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. In the Alwar spot market in Rajasthan the price gained 26 rupee to 3559 rupees per 20kgs. Technically market is under short covering as market has witnessed drop in open interest by -1.91% to settled at 69740 while prices up 21 rupee, now Mustard is getting support at 3427 and below same could see a test of 3410 level, And resistance is now likely to be seen at 3472, a move above could see prices testing 3500.