Commodity Trading Tips for Mustard by Kedia Commodity

Ajay Kumar Kedia 28 August 2013

Mustard Mustard yesterday settled down -0.76% at 3509 tracking weakness in spot demand as higher stocks weighed. Improved Festive season demand in mandis is there and is expected to support the market sentiments to some extent. There are reports that Production of rapeseed, the most common crop used in biodiesel in the European Union, may jump to a record 66.4 million metric tons, U. S. Department of Agriculture data show. Stockpiles of rapeseed oil globally will rise 18 percent to an all-time high of 3.12 million tons in 2013-14. Higher global production estimates for rapeseed and higher domestic oilseed acreage estimates in the current season are likely to put slight pressure on the rapeseed markets. Internationally, harvesting of the rapeseed crop is expected to start in Germany this week. A reported moderation in rape mustard meal output could be a dominant factor for the sentiments. Rape Mustard oil prices in Sri Ganganagar have slipped to their two and half-month low amid a massive correction in entire edible oils pack. 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. The mustard seed arrivals are slipping in major mandies now as the peak supplies season gets over. Overall demand in edible oils is expected to rise in coming days as festive season approaches. Market sources indicate that around 50% of the last year's crop is still available in the market. This will encouraged strong selling by stockiest at every rise in futures market. The mustard seed futures swelled by almost 10% in the last one week due to sharp rise in other oilseeds like soyabean and castor seed. Now Mustard is getting support at 3459 and below same could see a test of 3409 level, And resistance is now likely to be seen at 3564, a move above could see prices testing 3619.