Commodity Trading Tips for Mustard by Kedia Commodity

Ajay Kumar Kedia 29 August 2013

Mustard Mustard yesterday settled up 3.03% at 3610 tracking gains in edible oil prices, though higher stocks limited the upside. Market sources indicated that around 50% of the last year's crop is still available in the market. This prompted strong selling by stockiest at every rise in futures market. The mustard seed futures swelled by almost 10% in the last one week due to sharp rise in other oilseeds like soyabean and castor seed. Demand got adversely affected in the mandis as traders waited for some dips before initiating fresh demand. Firmness in other Oil complex have been supporting the market sentiments as demand picked up after the recent corrections in prices. Improved Festive season demand in mandis is 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. 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 3636 rupees per 20kgs. Now Mustard is getting support at 3539 and below same could see a test of 3467 level, And resistance is now likely to be seen at 3646, a move above could see prices testing 3681.