Commodity Trading Tips for Mustard Seed by KediaCommodity

Ajay Kumar Kedia 12 May 2014

Mustardseed Rmseed settled up 0.26% at 3520 on tracking bullish edible oil complex and improved demand for mustard oil. Traders and stockists are building inventories on account of expected decline in production than earlier expected. The arrivals in Rajasthan mandi were in the range of 2.1 - 2.4 lakh bags of 85 Kg each. Rapeseed-mustard including toria crop is estimated at 8% higher to 7.3 million tons in 2013-14 season from 6.8 million tons of last year, data from the Central Organisation for Oil Industry & Trade (COOIT) showed. India 2013-14 rapeseed-mustard production may to 7.6 tons, up 11% on year, data release from the Solvent Extractors Association (SEA) of India showed. 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. Technically market is under fresh buying as market has witnessed gain in open interest by 4.82% to settled at 136050 while prices up 9 rupee, now Rmseed is getting support at 3512 and below same could see a test of 3505 level, And resistance is now likely to be seen at 3530, a move above could see prices testing 3541.