Commodity Trading Tips for Mustard by KediaCommodity

Ajay Kumar Kedia 9 January 2014

Mustardseed Mustard seed ended with flat node as concerns over production due to extreme cold weather offset a drop in edible oil prices. India's rapeseed production is unlikely to rise in 2014 despite increased plantings as cold weather in the top producing region is seen denting yields, forcing the country to raise imports of palm and sunflower oil. After a poor harvest of soybeans, the world's biggest edible oil importer was relying on rapeseed output to arrest rising imports. Without any rise in rapeseed production, India will be forced to increase imports - which cost it a record $11.3 billion last fiscal year - from May onwards. The area planted with rapeseed has risen to 6.97 million hectares this year from 6.5 million hectares a year ago, as farmers took advantage of monsoon-soaked land to grow the crop, which is more lucrative than the usual chickpea. Based on the higher acreage, industry officials had been expecting as much as a 7.7 percent rise in production. As per the latest release from Ministry of agriculture, the sowing acreage of mustard seed was 69.76 lakh hectares as on 03rd January as against 65.05 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). In the Alwar spot market in Rajasthan the price dropped -45.05 rupee to 3610 rupees per 20kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 9.53% to settled at 33790 while prices up 3 rupee, now Rmseed is getting support at 3414 and below same could see a test of 3392 level, And resistance is now likely to be seen at 3459, a move above could see prices testing 3482.