Commodity Trading Tips for Mustard Seed by KediaCommodity

Ajay Kumar Kedia 24 July 2014

Mustardseed Rmseed settled down -0.99% at 3599 on strong offtake by oilmeal exporters' demand at higher levels. From the last few days, the prices were also well supported by possibility of poor rainfall in the current year. The strong demand in edible oils and Mustard Meal demand have been the supporting factors for Mustard seed and oil at lower levels. As per the latest crop survey by SEA of India, India's total mustard seed crop in 2013-14 is estimated at 74.40 lakh tonnes against 67 lakh tonnes of last year. This is mainly due to higher crop estimates in Rajasthan and Gujarat. On the sowing front, the area under major kharif oilseed has declined by almost 74% to report 3.80 million hectares as on 19 July 2014 due to poor sowing of groundnut and castorseed. According to data from the US Department of Agriculture, the global production of mustard seed in 2014-15 is expected to drop by 3.4 per cent to 68.64 million tonnes from 71 million tonnes a year ago. On the domestic front, data from the Solvent Extractors’ Association of India shows that the sowing area under mustard seed has increased to 71.38 lakh hectare for the 2013-14 crop year (October to September), up 5.8 per cent from the previous year. However, the third advance production estimate from the Department of Agriculture reveals that in 2013-14, mustard seed production would drop to 78.29 lakh tonnes, down by 2.5 per cent compared with the year earlier. Technically market is under long liquidation as market has witnessed drop in open interest by -1.2% to settled at 87230, now Rmseed is getting support at 3578 and below same could see a test of 3562 level, And resistance is now likely to be seen at 3625, a move above could see prices testing 3656.