Commodity Trading Tips for Mustard by KediaCommodity

Ajay Kumar Kedia 29 July 2013

Mustardseed Mustard yesterday settled down -1.11% at 3112 due to steady sowing progress of kharif oilseeds along with comfortable supplies in local mandies. If monsoon rain fall continues with its persisting trend then the mustard seed production is expected to touch higher level. As per the latest release from Ministry of Agriculture, the total sowing acreage of oilseeds reported at 136 lakh hectares against 67.50 lakh hectares in the same time last year. Moreover, comfortable supply situation in local mandies might also result to some selling in futures market. Traders estimated that around 32-35 lakh bags of mustard seed is still available in local mandies. This will encourage strong stockiest selling at higher levels. As per the market data, the total arrivals of mustard seed have reduced to 1.50-1.60 lakh bags in the last week , down almost 0.50-0.60 lakh bags from the earlier . This was on the account of restricted supplies by farmers at lower levels. The market data suggested that farmers are currently having the stocks of around 37 lakh tonnes , while almost 8 lakh tonnes are lying in the miller's warehouses. Traders also suggested that the total supply of mustard seed in the current year is expected at 67-68 lakh tonnes against the COOIT's estimate of 71 lakh tonnes . Therefore, reduction in mustard seed crop might incite the strong demand of mustard seed at lower level. In the Alwar spot market in Rajasthan the price gained 32 rupee to 3250 rupees per 20kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 0.05% to settled at 82040 while prices down -35 rupee, now Mustard is getting support at 3092 and below same could see a test of 3071 level, And resistance is now likely to be seen at 3139, a move above could see prices testing 3165.