Commodity Trading Tips for Mustard Seed by KediaCommodity

Ajay Kumar Kedia 8 July 2014

Mustardseed Mustard settled up 0.85% at 3574 as low level buying seen after the Friday’s drop due to strong stockiest liquidation in local mandies coupled with improvement in monsoon conditions in Northern India. The gain's will be capped as daunted by improvement in monsoon conditions in major mustard seed growing states such as Haryana , Rajasthan and Uttar Pradesh. The sources suggested that timely arrival of monsoon in Northern India will encourage the kharif oilseeds sowing and provide the better sowing conditions for Rabi sowing. Mustard seed futures traded on a negative note last week tracking weak edible oilseeds and settled 1.13% lower w-o-w. However, mustard meal exports demand and declining arrivals supported prices at lower levels. Mustard meal export increased 8.57% to 95,847 tn in May ’14 compared to 88,284 tn in May ’13. Sowing of mustard seed in 2013-14 stood at 7.13 mn ha as against 6.73 mn ha last year. Agriculture ministry in its 3rd advance estimates pegged 2013-14 mustard output at 7.8mn tn, down 2.9% compared to 8.03 mn tn in 2012-13. As per the market sources, the total daily arrivals in major have gained momentum from the higher levels as arrivals have been increased from the levels of 30 thousand bags to reach 40-45 thousand bags due to strong surge in local prices in the last two weeks. Therefore, higher prices in local mandies will encourage the stockiest to liquidate their surplus stocks. In the Alwar spot market in Rajasthan the price gained 25.5 rupee to 3605 rupees per 20kgs. Technically market is under short covering as market has witnessed drop in open interest by -1.33% to settled at 88510 while prices up 30 rupee, now Rmseed is getting support at 3559 and below same could see a test of 3543 level, And resistance is now likely to be seen at 3586, a move above could see prices testing 3597.