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NCDEX Mustard Seed under fresh selling; Support seen at 4124

Commodity Online 2018-08-09 14:03:03

Technically Mustard Seed market is under fresh selling as market has witnessed gain in open interest by 4.21% to settled at 109200 while prices down 12 rupees.

Now NCDEX Mustard Seed is getting support at 4124 and below same could see a test of 4114 level, And resistance is now likely to be seen at 4151, a move above could see prices testing 4168.

Mustard Seed on NCDEX settled down by 0.29% at 4134 tracking weakness in spot demand on profit booking after prices gained due to reports of higher meal exports reported by monthly SEA reports.

According to SEA latest export report, overall exports during April and July 2018, is up 24% at 898,871 tonnes compared to 725,250 tonnes during the same period last year. However, expectation of higher availability of mustard in market as National Agricultural Cooperative Marketing Federation of India (NAFED) started selling mustard seed in Rajasthan from Friday.

NAFED had procured the oilseed under the price support scheme in 2017-18 (Jul-Jun). Prices touched 4 months high last week. There is still good demand for meal exports. According to data compiled by Mustard Oil Producers Association, oil mills across the country crushed 450,000 tn of mustard in July, down 30.8% on month and 18.2% on year.

Mustard production in the country is seen at 6.6 mln tn in 2017-18 (Jul-Jun), marginally lower than 6.7 mln tn harvested in the previous year. A fall in area in 2017-18 can be attributed as the main reason for a smaller crop.

Acreage under mustard in the country was at 6.7 mln ha against 7.1 ml ha in 2016-17. In Alwar spot market in Rajasthan the prices gained 19.35 Rupees to end at 4346.9 Rupees per 100 kg.

Trading Ideas:
-- Mustard Seed trading range for the day is 4114-4168.
--Mustard seed dropped tracking weakness in spot demand on profit booking after prices gained due to reports of higher meal exports.
--The government has asked the NAFED to unload its stocks in the market but there are reports that the cooperative agency would not sell the seeds below MSP.
--NCDEX accredited warehouses mustard seed stocks dropped by 522 tonnes to 76137 tonnes.
--In Alwar spot market in Rajasthan the prices gained 19.35 Rupees to end at 4346.9 Rupees per 100 kg.

Courtesy: Kedia Commodities