Commodity Trading Tips for Mustard Seed by Kedia Commodity
Rmseed on NCDEX settled down -0.44% at 3804 tracking weakness in spot demand on oversupply woes in local mandis. Prices of the mustard were down as demand is lower after the crushing disparity fell to Rs 700 per quintal. However, sharp fall in the prices was cushioned by lower arrivals in the local mandis. Mustard arrivals in the country totaled at 460,000 bags (85kg each) against 490,000 bags previous session. Farmers are reluctant to offload their produce at the lower level. Further they mostly prefer in marketing of rabi wheat crop, which is giving them good remunerations. According to third advance estimates released by Rajasthan government, India's biggest mustard seed producer expected to produce 3.73 million tons of seed during 2016-17 as compared to 3.25 million tons in the previous year. Meanwhile, Solvent Extraction Association of India at its first National Conclave on Rapeseed and Mustard held on Apr 25 planned to set a mustard technology mission to double mustard oilseed output to 15 million tons from current seven million tons by 2025. Good weather and increase in minimum support prices (MSP), which attracted farmers to plant higher mustard, resulted into record crop of over 71.09 lakh tonnes, says industry body Solvent Extractors Association. Technically market is under long liquidation as market has witnessed drop in open interest by -0.18% to settled at 71880 while prices down -17 rupees, now Rmseed is getting support at 3787 and below same could see a test of 3769 level, And resistance is now likely to be seen at 3830, a move above could see prices testing 3855.
Rmseed trading range for the day is 3769-3855.
Mustard prices ended with losses tracking weakness in spot demand on oversupply woes in local mandis.
Mustard arrivals in the country totaled at 460,000 bags (85kg each) against 490,000 bags previous session.
NCDEX accredited warehouses mustard seed stocks gained by 1807 tonnes to 20343 tonnes.
In Alwar spot market in Rajasthan the prices gained 12.85 Rupees to end at 3767.5 Rupees per 100 kg.