Commodity Trading Tips for Mustardseed by KediaCommodity

Ajay Kumar Kedia 17 May 2013

Mustardseed yesterday traded with the positive node and settled 0.97% up at 3541 tracking firmness in spot demand on depleting supplies in spot markets. Arrivals in physical markets are gradually improving which may also not allow prices to see any sharp upside movement. The Industry estimated 71.5 Lakh tons of RMseed production this year. As per market sources, restricted supplies by farmers at lower levels along with strong supplies of wheat at higher rates might have reduced the total mustard seed arrivals in all the major producing states. The total daily arrivals of around 3.50-3.80 lakh bags were reported in local mandies, down almost 0.40-0.50 lakh bags from the last week. Moreover, strong mustard meal export demand also support the prices in the near term. The latest data compiled by the Solvent Extractors' Association of India ( SEA of India ), during April 2013 is reporting exports at 0.54 lakh tonnes compared to 0.45 lakh tonnes in April 2012 i.e. up by 20%.The total arrivals of new mustard seed were reported at 2.60 lakh bags , down 20 thousand from the last day. As per latest crop estimates by 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 down by -2.6 rupee to 3455.5 rupees per 20 kgs. In yesterday's trading session Mustardseed has touched the low of 3505 after opening at 3514, and finally settled at 3541. For today's session market is looking to take support at 3514.3, a break below could see a test of 3487.7 and where as resistance is now likely to be seen at 3558.3, a move above could see prices testing 3575.7.