Commodity Trading Tips for Mustard Seed by KediaCommodity

Ajay Kumar Kedia 13 August 2014

Mustardseed Rmseed settled up 0.17% at 3535 on some buying support after prices dropped on poor demand from crushers and on limited demand by oilmeal exporters. 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 12% to report 15.20 million hectares as on 8 August 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. Data from SEA 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. 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 23.2 rupee to 3684.7 rupees per 20kgs. Technically market is under short covering as market has witnessed drop in open interest by -1.21% to settled at 85110, now Rmseed is getting support at 3521 and below same could see a test of 3508 level, And resistance is now likely to be seen at 3546, a move above could see prices testing 3558.