Commodity Trading Tips for Mustardseed by KediaCommodity

Ajay Kumar Kedia 4 June 2013

Mustardseed Mustard yesterday settled up 0.37% at 3530 ruled higher amid decline in arrivals. The Industry estimated 71.5 Lakh tons of mustard seed production this year, will pressurize on the prices in near future. Rape Mustard oil prices are failing to hold onto higher side. The overall scenario in edible oils market in the country is mixed now as traders reassess the supply dynamics after a brief rally in last few days. According to COOIT', the total output of mustard seed in the country is seen at 71.50 lakh tonnes, up 12.70% on the year. As per market sources, restricted supplies by farmers at lower levels along with strong supplies of wheat at higher rates might have reduced the total mustard seed arrivals in all the major producing states. Moreover, strong mustard meal export demand also supports the prices in the near term. The latest data compiled by the SEA of India, during April 2013 is reporting exports at 0.54 lakh tonnes compared to 0.45 lakh tonnes in April 2012 i.e. up by 20%. After a steep decline last year, mustard oil production is likely to rise 27% in India this year due to record mustard seed production in the ongoing rabi season. Mustard seed production has been pegged at 70 lakh tonne as against 55 lakh tonne in 2012. Arrival was recorded at 2.40 lakh bags with MP recording an arrival of 22,000 bags, UP-23,000, Punjab/Haryana - 23,000, Rajasthan-1.30 lakh bags, Gujarat - 17,000, while 25,000 bags were offloaded in the remaining parts of the country. In the Alwar spot market in Rajasthan Mustard seed price dropped -3 rupee to 3481 rupees per 20kgs. Technically now Mustard is getting support at 3514 and below same could see a test of 3498 level, And resistance is now likely to be seen at 3542, a move above could see prices testing 3554.