Commodity Trading Tips for Mustard by KediaCommodity

Ajay Kumar Kedia 16 January 2014

Mustardseed Rmseed settled up 0.5% at 3411 as concerns over rapeseed production due to a cold wave supported prices. The latest data release by SEA of India suggested that the exports of mustard meal during the December 2013 reported strong gains of over 257% to reach 0.93 lakh tonnes against 0.26 lakh tonnes of the previous year. However , the overall fundamentals of the market will encourage the traders to liquidate some of their stocks from higher levels. 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).According to a trade sources, given the rise in sowing area, production of mustard in the country this year is expected to be around 75 lakh tonnes against 64 lakh tonnes last year. Besides, adequate carryover stock (10-12 lakh bags) is also likely to keep both mustard and mustard oil prices on leash. Due to better soil moisture, the area under mustard seeds has increased to 69.7 lakh hectares. Arrival of mustard across the mandis on Thursday was recorded at 83,000 bags with Rajasthan leading with 40,000 bags, followed by Uttar Pradesh with 11,000 bags, Punjab/Haryana with 9,000 bags, Madhya Pradesh 8,000 bags and Gujarat 5,000 bags, while 10,000 bags were offloaded elsewhere in the country. Technically market is under fresh buying as market has witnessed gain in open interest by 5.27% to settled at 39780 while prices up 17 rupee, now Rmseed is getting support at 3398 and below same could see a test of 3385 level, And resistance is now likely to be seen at 3424, a move above could see prices testing 3437.