Commodity Trading Tips for Mustardseed by KediaCommodity

Ajay Kumar Kedia 4 July 2012

Commodity Trading Tips for Mustardseed by KediaCommodity Mustardseed yesterday traded with the negative node and settled -0.6% down at 3977 as market has witnessed profit booking due to weak spot demand. Traders have focused more on the soybean rather than RMseed for time being. However if there are deficient rains than RMseed market may again see significant rally in near future. Indian monsoon rain would decide the fate of oilseeds prices in India. Hopes of monsoon arriving on time had revived buying interest in mustard oil, leading to a rise in its prices. However, weak global cues, delay in monsoon and sluggish trend in mustard futures have ended the rally. Due to a sharp rise in the Soybean and thereby Soymeal prices, the demand for mustard meal has increased in the past few days while supplies continue to remain tight. As per COOIT, Rapeseed output is estimated to drop by 12.6% to 6.03 mln tons in the year to June 2012. As per Solvent Extractors' Association of India, the domestic export of oil meals during May 2012 has increased to 351,791 tonnes, up by 8.60% as compared to 323,907 tonnes in May 2011. The total export of oil meals during April-May
2012 is reduced to 752, 218 tonnes, down more than10% as compared to the same period of last year. The total arrivals of mustard seed decreased by 3000 bags to 84000 bags in major mandies. In the Sri Ganganagar spot market in Rajasthan the price edged down by -10 rupee to 3870 rupees per 20 kgs. In yesterday's trading session Mustardseed has touched the low of 3967 after opening at 4000, and finally settled at 3977. For today's session market is looking to take support at 3959.7, a break below could see a test of 3942.3 and where as resistance is now likely to be seen at 4001.7, a move above could see prices testing 4026.3.