Commodity Trading Tips for Mustardseed by KediaCommodity

Ajay Kumar Kedia 9 May 2013

Mustardseed yesterday traded with the positive node and settled 0.41% up at 3436 due to improved demand in the spot market against limited arrivals from producing belts. The DOC demand and prices have also cooled during past few days which also impacted the market sentiments. Arrivals in physical markets are gradually improving which may further put pressure on prices in near future. The Industry estimated 71.5 Lakh tons of RMseed production this year. The group flagged a severe deterioration in the UK owing to detrimental weather conditions resulting in the abandonment of at least 200,000 hectares of winter rapeseed area. Rapeseed prices are expected to outperform soybean prices over the nest few months, a latest update from the Oil World states. The group downgraded prospects for the European Union harvest, and cutting to a forecast for the UK harvest, which met with skepticism when it was made last week. 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. In the Alwar spot market in Rajasthan the price edged up by 25.75 rupee to 3378.25 rupees per 20 kgs. In yesterday's trading session Mustardseed has touched the low of 3430 after opening at 3430, and finally settled at 3436. For today's session market is looking to take support at 3425.7, a break below could see a test of 3415.3 and where as resistance is now likely to be seen at 3450.7, a move above could see prices testing 3465.3.