Commodity Trading Tips for Mustardseed by KediaCommodity

Ajay Kumar Kedia 24 May 2013

Mustardseed yesterday traded with the negative node and settled -0.11% down at 3509 tracking weakness in spot market on continued good supplies. According to COOIT', the total output of mustard seed in the country is seen at 71.50 lakh tonnes, up 12.70% on the year. 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 Mustard seed production this year. This will put pressure on the prices in near future. 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. India is the fourth largest producer of mustard seed with a market share of around 12%. Rajasthan, Uttar Pradesh, Haryana, Gujarat and Madhya Pradesh are the major mustard seed-producing states. In the Alwar spot market in Rajasthan the price edged down by -6.45 rupee to 3500.55 rupees per 20 kgs. In yesterday's trading session Mustardseed has touched the low of 3502 after opening at 3510, and finally settled at 3509. For today's session market is looking to take support at 3499.7, a break below could see a test of 3490.3 and where as resistance is now likely to be seen at 3520.7, a move above could see prices testing 3532.3.