Commodity Trading Tips for Mustard Seed by Kedia Commodity

Ajay Kumar Kedia 12 December 2014

Mustard Seed settled up by 0.1% at 4058 on supply concern following weak sowing data. The buying was driven by expectations that India's rapeseed output would fall in 2015. Sowing of mustard seed, the major rabi oilseed, slumped 7.69% to 6 million hectare as against 6.45 million hectare a year ago due to lower sowing in Rajasthan and Madhya Pradesh, agriculture ministry data showed. Sources forecast India's rapeseed output could fall a tenth in 2014-15 as farmers sowed the main winter oilseed crop on a smaller area than the previous season because of poor soil moisture in the main growing areas. Sources expect rapeseed output to drop to 7.0 million tonnes in the 2014-15 crop year (July-June) from 7.4 million last year. The planted area is forecast to drop by 6 percent to 6.7 million hectares (16.6 million acres) from 7.1 million hectares. Rapeseed oil supplies could fall by 11 percent to 2.4 million tonnes in 2014-15 from the previous year, when ample monsoon rain helped the oilseed crop. Rapeseed output will depend on how the temperature prevails in the next six to seven weeks. Rapeseed needs damp condition for sowing and this year's poor monsoon in the northwest, including the main growing state of Rajasthan, led to the fall in planted area. In the Alwar spot market in Rajasthan the price gained 12.85 rupee to 4150.75 rupees per 20kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 3.83% to settled at 29800 while prices up 4 rupee, now Rmseed is getting support at 4041 and below same could see a test of 4025 level, And resistance is now likely to be seen at 4083, a move above could see prices testing 4109.