Commodity Trading Tips for Mustard by KediaCommodity

Ajay Kumar Kedia 7 February 2014

Rmseed settled up 0.58% at 3320 on short covering tracking firm spot demand after prices dropped due to increased land under rapeseed cultivation and prospects of better crop. Sowing of mustard seed surged to 7.1 million hectares until Jan 31 compared to 6.7 million hectares for the same period year ago, data from Farm Ministry showed. The market sources suggest that the total production of mustard seed in the current year is estimated at 77.32 lakh tonnes against 73.04 lakh tonnes of the previous year on the account of higher sowing acreage in major producing states along with strong yield rates due to better crop conditions. The total production of mustardseed crop of the state is estimated at 37.82 lakh tonnes, up 9.80% from the last year due to favouarble temperature along with adequate facilities of irrigation across all the districts. Similarly, the total production in Gujarat is also estimated at 4.19 lakh tonnes, up 43.12% from the last year. Cold wave conditions are prevailing in some parts of Rajasthan and these extreme cold weather for a prolonged period can trim rapeseed yields. Dense to moderate fog would occur at a few places over north Rajasthan during next 48 hours. Moderate fog would occur at a few places over north Madhya Pradesh. 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. Technically market is under fresh buying as market has witnessed gain in open interest by 2.78% to settled at 62900 while prices up 19 rupee, now Rmseed is getting support at 3302 and below same could see a test of 3284 level, And resistance is now likely to be seen at 3335, a move above could see prices testing 3350.