Commodity Trading Tips for Mustard by Kedia Commodity

Ajay Kumar Kedia 18 June 2013

Mustardseed Mustard seed settled flat as the supply season came to an end. 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 growers respond to the poor prices. Good monsoon progress till date has discouraged the stockeist to buy aggressively. However it appears that it will soon start because not much decline is expected in medium term in RMseed prices. 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. As per the latest USDA report, China rapeseed production is projected at 13.5 million tons, up 0.9 million based on increased area and yield indicated in recently released official government statistics. 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. 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. Mustard seed production has been pegged at 70 lakh tonne as against 55 lakh tonne in 2012. Better weather has boosted production in the current oil year (October 2012 to November 2013). In the Alwar spot market in Rajasthan the price remains unchanged at0 rupee to 3507 rupees per 20kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 0.42% to settled at 110930 while prices down -2 rupee, now Mustard is getting support at 3515 and below same could see a test of 3502 level, And resistance is now likely to be seen at 3545, a move above could see prices testing 3562.