Commodity Trading Tips for Mustard Seed by KediaCommodity

Ajay Kumar Kedia 1 August 2014

Mustardseed Rmseed settled up 0.19% at 3641 on improved demand amid tight supplies for the oilseed. Prices seen supportive as buying normally surges during monsoon due to increase in consumption of oil and rise in demand of mustard meal for cattle feed in domestic markets. Total mustard seed arrivals at Kota, Rajasthan stood 500 Bags, steady as against previous day. The arrival of fresh crop from northern states have slowed down but concerns of lower production of oilseeds are creating a pull from crushers and stockiest. 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. India mustard meal export increased 17.6% to 99,054 tons in June 2014 compared to 84,198 tons in June 2013, data from SEA of India showed. In the Alwar spot market in Rajasthan the price gained 25.75 rupee to 3790.25 rupees per 20kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 6.4% to settled at 54160 while prices up 7 rupee, now Rmseed is getting support at 3623 and below same could see a test of 3605 level, And resistance is now likely to be seen at 3661, a move above could see prices testing 3681.