Commodity Trading Tips for Mustard Seed by KediaCommodity

Ajay Kumar Kedia 30 July 2014

Mustardseed Rmseed settled down -0.78% at 3583 on the back of recovery in kharif oilseeds sowing along with limited demand by millers at higher levels. The latest data compiled by Ministry of Agriculture stated that Indian kharif oilseeds have reported steady sowing progress from the last two week on the back of favourable rainfall in states like Rajasthan, Madhya Pradesh and Maharashtra. The sowing data suggested that cultivators have added almost 85.72 lakh hectares in total sowing acreage. The arrivals are in the range of 60,000—70,000 bags of 85 Kg each. Given that India is expected to get below-normal monsoon this year and the expectation of El Nino setting in, plantings of mustard which begins in November as part of rabi farming operations could be affected. As such, a drawdown in production could limit the price fall in this commodity and could cause a reversal in the coming days. 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. In the Alwar spot market in Rajasthan the price gained 12.9 rupee to 3725.9 rupees per 20kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -0.72% to settled at 78810 while prices down -28 rupee, now Rmseed is getting support at 3566 and below same could see a test of 3549 level, And resistance is now likely to be seen at 3610, a move above could see prices testing 3637.