Commodity Trading Tips for Mustard by KediaCommodity

Ajay Kumar Kedia 2 June 2014

Mustardseed Rmseed settled up 0.17% at 3456 on receding supplies in domestic market. However, the lack of demand in edible oils and worries over the Mustard Meal demand have been the moderating factors the prices. India's rapeseed output is expected to rise 11 percent to 7.6 million tonnes in 2013/14, the Solvent Extractors' Association of India (SEA) said in a statement, potentially helping New Delhi cut vegetable oil imports. Favourable weather conditions have helped the rapeseed crop, the main winter-sown oilseed grown in India, the world's top edible oil importer, the SEA statement said. Sources expect local rapeseed oil output to rise 13 percent in 2014, as farmers take advantage of monsoon-soaked land to grow the more lucrative crop. Government second advanced estimates showed total production of mustard seed in 2013-14 is seen at 8.25 million tons against 7.3 million tons in the previous year on the account of higher sowing acreage in major producing states along with strong yield rates due to better crop conditions. Sowing of mustard seed surged to 7.12 million hectares compared to 6.72 million hectares for the same period year ago, data from Farm Ministry showed. Latest rabi sowing data from the government shows that acreage under oilseeds stood at 90.07 lakh hectares, up more than 3% compared to the last year. In the Alwar spot market in Rajasthan the price gained 25.75 rupee to 3507 rupees per 20kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 8.02% to settled at 90000 while prices up 6 rupee, now Rmseed is getting support at 3438 and below same could see a test of 3419 level, And resistance is now likely to be seen at 3480, a move above could see prices testing 3503.