Mustardseed yesterday traded with the positive node and settled 3.01% up at 3867 on some short covering after prices dropped Friday as exchange has imposed the special margin on the long side trades of mustard seed contracts. The latest circular from NCDEX stated that the special margin of 10% (in cash) on the Long side trades will be imposed on all the running contracts with the effect from March 31, 2012. This prompted the sharp selling in mustard seed futures market. Lower production estimates of RM Seed this year as compared to last year due to lower sowing acreage coupled with sharp decline in yield also provided support to the prices. As per COOIT, the country's rapeseed output is estimated to drop by 12.6 percent to 6.03 million tonnes in the year to June 2012. Mustard seed availability will be lower this year which will put a pressure on prices. There was a predominant dry spell in November-December last year which has affected the mustard crop. Against the availability of 70 lakh tonne last year, we are expecting a volume of 60 lakh tonne this year. In the Sri Ganganagar spot market in Rajasthan the price edged up by 73.75 rupee to 3785 rupees per 20 kgs. In yesterday's trading session Mustardseed has touched the low of 3759 after opening at 3759, and finally settled at 3867. For today's session market is looking to take support at 3795, a break below could see a test of 3723 and where as resistance is now likely to be seen at 3903, a move above could see prices testing 3939.
RM Seed trading range for the day is 3723-3939.
Mustard seed ended with good gains on some short covering after prices dropped after exchange has imposed the special margin
Special margin of 10% (in cash) on the long side imposed on all running contracts in RMSEED
NCDEX accredited warehouses mustard seed stocks gained by 2651 tonnes to 26187 tonnes.
In the Alwar spot market in Rajasthan the price edged up by 73.75 rupee to 3785 rupees per 20 kgs.