Commodity Trading Tips for Mustard by Kedia Commodity

Ajay Kumar Kedia 13 August 2013

Mustard Mustard yesterday settled up 0.15% at 3286 on hopes the festival season would boost demand for edible oils. Higher global production estimates for rapeseed and higher domestic oilseed acreage estimates in the current season are likely to put slight pressure on the rapeseed markets. However, with weather getting drier to to end of rains few days back, demand for both mustard oil and seeds has gone up. Weak arrival and improved buying support have also lifted prices of mustard seeds and raida with mustard seeds prices in Indore mandis. A reported moderation in rape mustard meal output could be a dominant factor for the sentiments. Rape Mustard oil prices in Sri Ganganagar have slipped to their two and half-month low amid a massive correction in entire edible oils pack. According to COOIT', the total output of mustard seed in the country is seen at 71.50 lakh tonnes, up 12.70% on the year. The mustard seed arrivals are slipping in major mandies now as the peak supplies season gets over. Overall demand in edible oils is expected to rise in coming days as festive season approaches. As per latest crop estimates by Solvent Extractors Association of India (SEA), the overall mustard seed crop is estimated to increase by almost 18% from the last year to 71.12 lakh tonnes in the current year due to strong production estimates in Rajasthan and Haryana. After a steep decline last year, mustard oil production is likely to rise 27% in India this year due to record mustard seed production in the ongoing rabi season. In the Alwar spot market in Rajasthan the price gained 26 rupee to 3456 rupees per 20kgs. Now Mustard is getting support at 3262 and below same could see a test of 3237 level, And resistance is now likely to be seen at 3305, a move above could see prices testing 3323.