Commodity Trading Tips for Mustard by KediaCommodity

Ajay Kumar Kedia 6 December 2013

Mustardseed Rmseed settled down -0.87% at 3781 amid softness in edible oils and worries over the Mustard Meal demand. The prices have been under stress due to better production prospects for the current year. Some are also worried 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. Traders are worried that the demand for Mustardmeal from overseas markets could ease in coming days after the massive spurt in October. According to the latest data from the Sea Of India, the total Mustard Meal exports from the country stood at 143848 tonnes in October, up nearly 140% from the month of September. However, for the oil year (November-October), the Mustard Meal exports slipped 34% to 561516 tonnes. RM seed had gained in a solid manner in last few days and has managed to hit its highest level in nearly nine months. As per the latest release from Ministry of Agriculture, the total sowing acreage of mustard seed as on 28th November, 2013 reported at 60.74 lakh hectares against 57.14 lakh hectares in the same time last year. This was mainly on the account of higher sowing acreage in major producing states such as Rajasthan and Gujarat. Indian farmers cultivated rapeseed on 6.07 million hectares as on now, compared with 5.72 million hectares a year earlier. In the Alwar spot market in Rajasthan the price gained 32.2 rupee to 3790.25 rupees per 20kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 3.2% to settled at 35180 while prices down -33 rupee, now Rmseed is getting support at 3766 and below same could see a test of 3751 level, And resistance is now likely to be seen at 3805, a move above could see prices testing 3829.