Commodity Trading Tips for Mustard by Kedia Commodity

Ajay Kumar Kedia 27 August 2013

Mustard Mustard yesterday settled up 2.35% at 3533 as gains in overseas markets and concerns about local output bolstered sentiment. Improved Festive season demand in mandis is however there and is expected to support the market sentiments to some extent. Overall sentiments are expected to remain slight firm as good improved physical market buying has supported the market sentiments. Indian markets also, reports of fear of crop damage in some parts of its growing areas due to excess rains could keep supporting prices. However industry sources say that this year the crop production may remain higher by at least 18% at 13.34 million tons as compared to last year. 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. Market sources indicate that around 50% of the last year's crop is still available in the market. In the Alwar spot market in Rajasthan the price gained 52 rupee to 3610 rupees per
20kgs. Now Mustard is getting support at 3482 and below same could see a test of 3430 level, And resistance is now likely to be seen at 3568, a move above could see prices testing 3602.