Commodity Trading Tips for Mustard Seed by KediaCommodity

Ajay Kumar Kedia 28 August 2014

Mustardseed Rmseed settled down -1.06% at 3531 on weak demand for mustard oil and tracking bearish edible oil. The demand for meal from exporters amid poor carry over stocks will pull up the markets in the coming weeks. The arrivals remained in the range of 55,000 – 65,000 bags of 85Kg each. 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. Romania’s rape seed crop this year is the best in the last 34 years. The previous record was in 2010, when production totaled 943,000 tons. In 2013, the rape seed production was 647,811 tons. The record production was due to larger surfaces cultivated with rape seed, 423,000 hectares compared to 284,000 hectares in 2013, but also due to higher productions per hectare, 2.6 tons this year, compared to 2.2 tons in 2013. 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 dropped -25.75 rupee to 3713 rupees per 20kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -10.12% to settled at 36750 while prices down -38 rupee, now Rmseed is getting support at 3505 and below same could see a test of 3480 level, And resistance is now likely to be seen at 3568, a move above could see prices testing 3606.