Commodity Trading Tips for Mustardseed by KediaCommodity

Ajay Kumar Kedia 2 May 2013

Mustard seed settled flat on profit booking after prices gained in the wake of receding arrival in local mandies along with the steady rise in other oilseeds. Rapeseed supplies are rising from the new season crop. Output of rapeseed is estimated to have risen about 22 percent on year to 7.15 million tonnes in 2012-13. The total arrivals of new mustard seed were reported at 4.40 lakh bags , down 10 thousand bags from the last day. As per latest crop estimates by Solvent Extractors Association of India (SEA), the overall mustard seed crop is estimated to increase by almost 18% from the last year to 71.12 lakh tonnes in the current year due to strong production estimates in Rajasthan and Haryana. As per the latest USDA report, China rapeseed production is projected at 13.5 million tons, up 0.9 million based on increased area and yield indicated in recently released official government statistics. After a steep decline last year, mustard oil production is likely to rise 27% in India this year due to record mustard seed production in the ongoing rabi season. Mustard seed production has been pegged at 70 lakh tonne as against 55 lakh tonne in 2012. Better weather has boosted production in the current oil year (October 2012 to November 2013). In the Alwar spot market in Rajasthan the price edged up by 3.85 rupee to 3407.85 rupees per 20 kgs. In yesterday's trading session Mustardseed has touched the low of 3422 after opening at 3517, and finally settled at 3505. For today's session market is looking to take support at 3438.3, a break below could see a test of 3371.7 and where as resistance is now likely to be seen at 3555.3, a move above could see prices testing 3605.7.