Commodity Trading Tips for Mustard Seed by KediaCommodity

Ajay Kumar Kedia 15 May 2014

Mustardseed Rmseed settled down -0.7% at 3538 dropped on estimates of higher production of the oilseed in the key growing area across India. However, the lack of demand in edible oils and worries over the Mustard Meal demand have been the moderating factors for Mustard seed and oil at higher levels. As per the latest crop survey by SEA of India, India's total mustard seed crop in 2013-14 is estimated at 74.40 lakh tonnes against 67 lakh tonnes of last year. This is mainly due to higher crop estimates in Rajasthan and Gujarat. As per the second advance estimates of Indian government, the total mustard seed production in 2013-14 is estimated at 8.25 million tonnes against 8.03 million tonnes due to higher sowing acreage. 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. 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. In the Alwar spot market in Rajasthan the price gained 12.9 rupee to 3519.9 rupees per 20kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -1.94% to settled at 139800, now Rmseed is getting support at 3522 and below same could see a test of 3511 level, And resistance is now likely to be seen at 3554, a move above could see prices testing 3575.