Commodity Trading Tips for Mustard by KediaCommodity

Ajay Kumar Kedia 2 January 2014

Mustardseed Rmseed settled flat on concerns that a sharp drop in temperature in the northern part of the country could damage rapeseed crop. Rapeseed acreage has risen, but the weather has been becoming unfavourable for the crop. The sharp drop in temperature can reduce yields. Temperature has fallen below normal level in top rapeseed producing Rajasthan state. Some parts of the state even reported ground frost, the weather department said. Thundershower would occur at isolated places over Punjab, Haryana and north Rajasthan on Tuesday and increase thereafter, the department said. Thundershower can damage the rapeseed crop. Indian farmers had cultivated rapeseed on 6.75 million hectares as on Dec. 19, compared with 6.36 million hectares a year earlier. As per the latest release from Ministry of agriculture, the sowing acreage of mustard seed was 68.86 lakh hectares as on 26 December 2013 as against 64.48 lakh hectares a year ago. This was mainly on account of higher area under the crop in major producing states such as Rajasthan and Madhya Pradesh (MP). Traders mentioned that below-average temperature in some parts of Rajasthan, MP and Uttar Pradesh will encourage the sowing of mustard seed over other short duration crops like coriander and jeera. According to the latest data from the Sea Of India, the total Mustard Meal exports from the country stood at 27000 tonnes in November, down nearly 50% from the month of October. Technically market is under fresh selling as market has witnessed gain in open interest by 6.58% to settled at 20880 while prices down -2 rupee, now Rmseed is getting support at 3453 and below same could see a test of 3438 level, And resistance is now likely to be seen at 3483, a move above could see prices testing
3498.