Commodity Trading Tips for Mustard Seed by KediaCommodity

Ajay Kumar Kedia 14 August 2014

Mustardseed Rmseed settled up 0.4% at 3549 due to short covering tracking bullishness in the edible oil complex. At Jaipur market arrivals were reported at 50000 Bags, unchanged as compared to previous day's arrival. 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. On the sowing front, the area under major kharif oilseed has declined by almost 12% to report 15.20 million hectares as on 8 August 2014 due to poor sowing of groundnut and castorseed. Rapeseed production in the European Union will be bigger than previously expected as yields increase across the continent. Output will be a record 23.1 MMT in the 2014-15 season, 0.4MMT more than estimated a month earlier and 8.8 percent higher than last year as per recent surveys. Germany's crop, the EU's biggest, will be 6.4 percent larger than last year at 6.15 MMT. Yields are going to be on the higher side than compared to last year. 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 gained 2.55 rupee to 3687.25 rupees per 20kgs. Technically market is under short covering as market has witnessed drop in open interest by -2.29% to settled at 83160, now Rmseed is getting support at 3536 and below same could see a test of 3523 level, And resistance is now likely to be seen at 3558, a move above could see prices testing 3567.