Commodity Trading Tips for Mustardseed by KediaCommodity

Ajay Kumar Kedia 26 July 2013

Mustardseed Mustard yesterday settled down -4% at 3099 as a strong rupee and a jump in oilseeds acreage due to good monsoon depressed sentiment. Good monsoon has resulted in to speedy sowing activities of kharif crops in the country. As per the latest release from Ministry of Agriculture, the total sowing acreage of oilseeds as on 12th July 2013 reported at 136 lakh hectares against 67.50 lakh hectares in the same time last year. This is mainly due to strong sowing progress of soyabean and Groundnut in the major producing states. 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. Better weather has boosted production in the current oil year (October 2012 to November 2013). As per latest crop estimates by Solvent Extractors Association of India (SEA), the overall mustard seed crop is estimated to increase by almost 18% from the last year to 71.12 lakh tonnes in the current year due to strong production estimates in Rajasthan and Haryana. If monsoon rain fall continues with its persisting trend then the mustard seed production is expected to touch higher level there by pressuring the commodity prices to certain extent. In the Alwar spot market in Rajasthan the price dropped -103 rupee to 3237 rupees per 20kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -8.49% to settled at 92330 while prices down -129 rupee, now Mustard is getting support at 3064 and below same could see a test of 3028 level, And resistance is now likely to be seen at 3170, a move above could see prices testing 3240.