Commodity Trading Tips for Mustard Seed by KediaCommodity

Ajay Kumar Kedia 12 August 2014

Mustardseed Rmseed settled down -1.04% at 3529 due to poor demand from crushers amid weakness in alternate oil complex. The latest data compiled by Ministry of Agriculture stated that Indian kharif oilseeds have reported steady sowing progress from the last two to three weeks on the back of favourable rainfall in states like Rajasthan, Madhya Pradesh and Maharashtra. The total kharif oilseeds reached 137 lakh hectares, added 120 lakh hectares in last three weeks. Therefore, sharp recovery in kharif oilseeds sowing will encourage stockiest selling at current levels. The prices of mustard seed futures will also be daunted by sluggish demand by millers at higher levels as they are expecting strong recovery in soyabean sowing acreage. The arrivals remained in the range of 55,000-62,000 bags of 85 Kg each. The prices of rapeseed meal in European markets are falling with production of mustard on the higher side in the coming season. Germany is EU's largest producer of rapeseed, Europe's most important oilseed for edible oil and biodiesel production. German farmers are likely to harvest 5.8 MMT of winter rapeseed in 2014, up from 5.7 MMT in 2013. On the domestic front, data from the Solvent Extractors' Association of India shows that the sowing area under mustard seed has increased to 71.38 lakh hectare for the 2013-14 crop year (October to September), up 5.8 per cent from the previous year. In the Alwar spot market in Rajasthan the price dropped -51.5 rupee to 3661.5 rupees per 20kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 13.28% to settled at 86150 while prices down -37 rupee, now Rmseed is getting support at 3512 and below same could see a test of 3494 level, And resistance is now likely to be seen at 3559, a move above could see prices testing 3588.