Commodity Trading Tips for Mustard Seed by KediaCommodity

Ajay Kumar Kedia 19 August 2014

Mustardseed Rmseed settled down -1.56% at 3399 on slack demand from crushers amid weakness in alternate oil complex. The arrivals remained in the range of 45,000—55,000 bags of 85 Kg each. Though oilmeal exports dipped for the third consecutive month due to rise in soybean prices, but the rapeseed meal has increased 53 per cent to 408,410 tonnes from 267,461 tonnes in last four months. 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. Rapeseed production in the European Union will be bigger than previously expected as yields increase across the continent. Output will be a record 23.1 MMT in the 2014-15 season, 0.4MMT more than estimated a month earlier and 8.8 percent higher than last year as per recent surveys. 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. In the Alwar spot market in Rajasthan the price dropped -32.15 rupee to 3648.65 rupees per 20kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -2.5% to settled at 83020 while prices down -54 rupee, now Rmseed is getting support at 3376 and below same could see a test of 3354 level, And resistance is now likely to be seen at 3434, a move above could see prices testing 3470.