Commodity Trading Tips for Mustard by Kedia Commodity

Ajay Kumar Kedia 25 July 2013

Mustardseed Mustard yesterday settled down -2.87% at 3219 tracking weakness in spot demand due to steady sowing progress of kharif oilseeds along with comfortable supplies in local mandies. As per the latest release from Ministry of Agriculture, the total sowing acreage of oilseeds reported at 136 lakh hectares against 67.50 lakh hectares in the same time last year. This is mainly due to strong sowing progress of soyabean and Groundnut in the major producing states. Traders estimated that around 32-35 lakh bags of mustard seed is still available in local mandies. This will encourage strong stockiest selling at higher levels. If monsoon rain fall continues with its persisting trend then the mustard seed production is expected to touch higher level there by pressuring the prices to certain extent. With plenty of rains lashing oilseeds growing States, the prospect of rise in sowing and further rise in production has also added to sluggish trend. 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 average weekly arrivals of mustard seed in local mandies were still higher than previous year due to strong production in the current year along with steady selling with the anticipation of weak demand in the coming days. The average daily arrivals of mustard seed in local mandies were reported at around 1.80-1.90 lakh bags against 0.80-1 lakh bags seen in last year in the same time. Now Mustard is getting support at 3187 and below same could see a test of 3155 level, And resistance is now likely to be seen at 3279, a move above could see prices testing 3339.