Commodity Trading Tips for Mustard Seed by KediaCommodity

Ajay Kumar Kedia 22 August 2014

Rmseed settled up 0.64% at 3448 with supplies diminishing and demand remained steady from crushers. Mustard meal export increased 114.26% to 87,637 tn in July ’14 compared to 40,902 tn in July ’13. Sowing of mustard seed in 2013-14 stood at 7.13 mn ha as against 6.73 mn ha last year. Agriculture ministry in its 3rd advance estimates has pegged 2013-14 mustard output at 7.8mn tn, down 2.9% compared to 8.03 mn tn in 2012-13. The arrivals remained in the range of 45,000 – 55,000 bags of 85Kg each. World exports of rapeseed are forecast to slide in the year through June 2015 on reduced crops in Canada, Ukraine and Australia as well as a bigger harvest in Europe. Global shipments may fall to 13.6 million to 13.9 million metric tons in 2014-15 from last year’s record 15.2 million tons but that would still be the second-highest export.Producers in the 28-member EU are forecast to harvest 23.5 million tons of rapeseed, up by 2.3 million tons from a year earlier and that will cut imports by the bloc to 2.3 million tons from 3.8 million tons. The USDA monthly crop report in August forecast 2014-15 output 3.816 bn bsh against 3.8 bn bsh last year while end stocks are forecast at 430 mn bsh against 415 mn bsh forecast in July. 2013-14 end stocks are forecast at 140 mn bsh. In the Alwar spot market in Rajasthan the price gained 33.45 rupee to 3661.5 rupees per 20kgs. Technically market is under short covering as market has witnessed drop in open interest by -10.62% to settled at 65880 while prices up 22 rupee, now Rmseed is getting support at 3422 and below same could see a test of 3397 level, And resistance is now likely to be seen at 3463, a move above could see prices testing 3479.