Commodity Trading Tips for Mustard Seed by Kedia Commodity

Mustard Seed on NCDEX settled down by -0.63% at 3942 on profit booking and on expectation of higher supply. The rains which are expected during the coming days would be favourable for the mustard crop as the crop requires moisture during this stage. The favourable climatic conditions this year have raised hopes of a bumper mustard crop in 2016-17, if there is no adversity reported in coming months. Mustard sowing is completed on 6.953 million hectare as compared to 6.276 million hectare, higher by 10.8%. Congenial sowing conditions and higher prices forced farmers to take buoyant sowing of Mustard in Rajasthan, Madhya Pradesh and Uttar Pradesh. Mustard sowing in Uttar Pradesh has crossed normal acreage of the season. Favourable weather conditions (cool and dry) during last month has led Mustard crop to be good to excellent conditions. Temperatures were reported below normal during last 7-8 days which will help in improving the crop conditions in turn on yields. Crop is in vegetative to flowering and pod formations. The spell of cold day and night in coming fortnight is likely to continue which will boost flowering and pod formation. No major pest/disease threat reported from Key regions. At Jaipur market sources reported arrivals at 2000 Bags, lower by 1000 Bags as compared to previous day. In Alwar spot market in Rajasthan the prices gained 12.9 rupees to end at 4346.9 rupees per 100 kg.Technically market is under fresh selling as market has witnessed gain in open interest by 3.61% to settled at 24990 while prices down -25 rupee, now Rmseed is getting support at 3925 and below same could see a test of 3909 level, And resistance is now likely to be seen at 3965, a move above could see prices testing 3989.

Trading Ideas:

Rmseed trading range for the day is 3909-3989.

Mustard seed dropped on profit booking and on expectation of higher supply.

The rains which are expected during the coming days would be favourable for the mustard crop as the crop requires moisture.

NCDEX accredited warehouses mustard seed stocks dropped by 161 tonnes to 3162 tonnes.

In Alwar spot market in Rajasthan the prices gained 12.9 rupees to end at 4346.9 rupees per 100 kg.