Commodity Trading Tips for Mustard by KediaCommodity

Ajay Kumar Kedia 22 January 2014

Mustardseed Rmseed settled down -0.12% at 3415 on late profit booking after prices seen supported tracking firmness in spot prices as prices spot up on poor supplies. Sowing of mustard seed surged to 7.03 million hectares until Jan 10 compared to 6.62 million hectares for the same period year ago, data from Farm Ministry showed. Low temperature in Rajasthan and Madhya Pradesh, major mustard seed growing state has triggered fear of crop damage. However, there are no reports of crop damage by the government. Low temperature in Rajasthan and Madhya Pradesh, major mustard seed growing state has triggered fear of crop damage. However, there are no reports of crop damage by the government. 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. Based on the higher acreage, industry officials had been expecting as much as a 7.7 percent rise in production. In the Alwar spot market in Rajasthan the price dropped -12.9 rupee to 3558.5 rupees per 20kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 4.88% to settled at 46020 while prices down -4 rupee, now Rmseed is getting support at 3405 and below same could see a test of 3395 level, And resistance is now likely to be seen at 3431, a move above could see prices testing 3447.