Commodity Trading Tips for Mustard by KediaCommodity

Ajay Kumar Kedia 28 November 2013

Mustardseed Rmseed settled up 0.4% at 3796 on some buying support tracking firm spot demand after prices seen pressure amid reports that new-season plantings are progressing well in the main producing state of Rajasthan. Rapeseed prices in Northern Rajasthan and Jaipur belt depicted southwards trend. The total arrivals of rapeseed in Rajasthan today were placed at 35,000 - 45,000 bags of 85 kg each. Indian farmers had sown 5.44 million hectares with the oilseed by November 21, up from 5.25 mln at the same time last year. The weather conditions are quite conducive for the crop cultivation. In the near future the sowing progress will largely determine its prices behavior. The crop in north Indian states like Rajasthan, UP and Haryana is in good crop health brightening the higher production prospects. Indian government announced the MSP for RMSeed for the marketing year 2014-15. European Union rapeseed plantings may fall more than the market had initially expected as weaker prices prompt farmers to switch to other crops, with falls in top producers France and Germany particularly strong. Rapeseed plantings in the EU, the world's biggest producer of the oilseed, may fall 3% year on year to 6.5m hectares. The market sources suggested that below average temperature in major producing states such as Uttar Pradesh, Rajasthan and Madhya Pradesh will delay the overall formation and harvesting of the oilseed crop in the coming season. In the Alwar spot market in Rajasthan the price gained 6.4 rupee to 3783.8 rupees per 20kgs. Technically market is under short covering as market has witnessed drop in open interest by -2.93% to settled at 42060 while prices up 15 rupee, now Rmseed is getting support at 3767 and below same could see a test of 3738 level, And resistance is now likely to be seen at 3819, a move above could see prices testing 3842.