Commodity Trading Tips for Mustard Seed by Kedia Commodity

Mustard Seed on NCDEX settled down by -1.53% at 4626 due to strong kharif oilseeds production in the current year.Total production of kharif oilseeds in the country is estimated at 23.36 million tonnes which is significantly higher than the production of 16.59 million tonnes during 2015-16. This year production of Kharif oilseed is also higher by 2.33 million tonnes than the average production of last five years. Moreover, reports of timely rains relieve EU rapeseed crops after dry weather during sowing. The country's production of rapeseed, is expected to rise 6.3 mt, up 12.5 % from a year earlier. The demand for mustard may pickup in physical market. The Oct'16 contract ended 1.09% down to settle at Rs. 4,722/quintal. Market is expecting increase in crushing demand from the oil mills prices in coming weeks. World Rapeseed trade expected to grow of forecast of lower production in EU. According to latest USDA report, rapeseed crop is lowered for the European Union and Russia, offsetting a modest increase in Canada. The world production of 66.86 mt is forecasted for 2016/17 season. Canada rapeseed exports are up 0.2mt to 9.6 mt, on a larger production forecast and strong global demand. The overall sowing acreage of kharif oilseeds has been reported at 149.60 lakh hectares , up 6 % from last year. Moreover, weakness in mustard meal oilseeds also added selling in local mandies. In Alwar spot market in Rajasthan the prices dropped -77.25 rupees to end at 4849 rupees per 100 kg.Technically market is under long liquidation as market has witnessed drop in open interest by -7.18% to settled at 48630, now Rmseed is getting support at 4581 and below same could see a test of 4536 level, And resistance is now likely to be seen at 4706, a move above could see prices testing 4786.

Trading Ideas:

Rmseed trading range for the day is 4536-4786.

Mustard seed dropped due to strong kharif oilseeds production in the current year.

Moreover, reports of timely rains relieve EU rapeseed crops after dry weather during sowing.

NCDEX accredited warehouses mustard seed stocks dropped by 793 tonnes to 24587 tonnes.

In Alwar spot market in Rajasthan the prices dropped -77.25 rupees to end at 4849 rupees per 100 kg.