Commodity Trading Tips for Mustard by KediaCommodity

Ajay Kumar Kedia 12 September 2013

Mustardseed Mustard yesterday settled up 1.55% at 3535 tracking firmness in spot demand and other oilseed counters. Improved Festive season demand is there which would not allow prices to come down severely. Market sources suggested that steady sowing progress of major kharif oilseeds prompted strong selling in the mustard seed market. The latest data received from Ministry of Agriculture stated that the overall sowing acreage of Kharif oilseeds as on now was reported at 188 lakh hectares, up 6.21% from the last year in the same time. 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. 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. 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. Now Mustard is getting support at 3495 and below same could see a test of 3455 level, And resistance is now likely to be seen at 3555, a move above could see prices testing 3575.