Commodity Trading Tips for Mustard by KediaCommodity

Ajay Kumar 10 October 2013

Mustardseed Mustard yesterday settled down -0.03% at 3602 on late profit booking after prices rose earlier tracking firmness in other oilseed counter with physical demand remaining strong during this Festive season. India annually produces around 6-8 million tonnes of mustard seed and ranks third in the world in production having a market share of 11.0%. Recent rains in the past fortnight of the September month proved beneficial for the next season crop as it would provide the desired moisture to the soil for the new crop sowing starting in October. Improved Festive season demand however is there which would not allow prices to come down severely. Fresh showers can disrupt harvesting and further tighten supplies in spot market. Market sources suggested that steady sowing progress of major kharif oilseeds prompted strong selling in the mustard seed market. The latest data received from Ministry of Agriculture stated that the overall sowing acreage of Kharif oilseeds as on now was reported at 188 lakh hectares, up 6.21% from the last year in the same time. Traders stated that anticipation of further decline in mustard seed prices due to strong kharif oilseeds in the coming days resulted to poor demand of mustard meal in local mandies. In the Alwar spot market in Rajasthan the price gained 21 rupee to 3631 rupees per 20kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -3.1% to settled at 35060 while prices down -1 rupee, now Mustard is getting support at 3586 and below same could see a test of 3569 level, And resistance is now likely to be seen at 3631, a move above could see prices testing 3659.