Commodity Trading Tips for Mustard Seed by KediaCommodity

Ajay Kumar Kedia 2 September 2014

Mustardseed Rmseed settled down -1.39% at 3542 as pressure seen due to profit-taking as stockist buying interest for overseas sales for rapeseed meal eased. Rapeseed meal exports jumped to 87,637 tons in July compared to 40,902 tons for the same period a year ago data by Solvent Extractors Association (SEA) of India showed. The supplies are limited and demand for meal from exporters will support the upward push to the market prices in the coming weeks. The arrivals remained in the range of 55,000 – 65,000 bags of 85Kg each. As per SEA data bank, the imports of Rape oil are steadily on the rise and have significantly increased by more than 11 times from 7,943 MT to 103,003 MT. Though oilmeal exports dipped for the third consecutive month due to rise in soybean prices, but the rapeseed meal has increased 53 per cent to 408,410 tonnes from 267,461 tonnes in last four months. 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. However, the third advance production estimate from the Department of Agriculture reveals that in 2013-14, mustard seed production would drop to 78.29 lakh tonnes, down by 2.5 per cent compared with the year earlier. In the Alwar spot market in Rajasthan the price dropped -77.25 rupee to 3635.75 rupees per 20kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 7.4% to settled at 46750 while prices down -50 rupee, now Rmseed is getting support at 3520 and below same could see a test of 3497 level, And resistance is now likely to be seen at 3569, a move above could see prices testing 3595.