Commodity Trading Tips for Mustard by KediaCommodity

Ajay Kumar Kedia 7 November 2013

Mustardseed Mustard yesterday settled up 1.26% at 3944 tracking good demand in local oilseeds market. The markets eyed a surge in Kharif oilseeds supplies in coming weeks but the supplies of RM seed- a rabi crop are likely to be on the wane in near term. 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 in last season. The mustard seed arrivals are slipping in major mandies now as the peak supplies season gets over. India looks set for bumper harvests of rapeseed in the wake of a strong monsoon that has left the soil moist and topped up reservoirs. If weather conditions do not change abruptly, rapeseed production should exceed the 7.82 million tonnes harvested in the previous year. Higher output of rapeseed, which has the highest oil content among India's nine main oilseeds, will help cut imports by the world's biggest vegetable oil importer. The spot market traders suggested that remunerative prices of mustard seed in the current year along with favourable rainfall in major mustard seed crop growing states like Haryana, Rajasthan and Madhya Pradesh will increase the total sowing acreage by almost 10-15% in the coming rabi season. Therefore, anticipation of strong production in the current year prompted the strong stockiest selling from higher levels. In the Alwar spot market in Rajasthan the price gained 19 rupee to 3765 rupees per 20kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 7.06% to settled at 38510 while prices up 49 rupee, now Mustard is getting support at 3901 and below same could see a test of 3859 level, And resistance is now likely to be seen at 3971, a move above could see prices testing 3999.