NCDEX Mustard Seed under long liquidation; Support seen at 3907

Technically Mustard Seed market is under long liquidation as market has witnessed drop in open interest by 2.9% to settled at 18720 while prices remain unchanged rupees.

Now NCDEX Mustard Seed is getting support at 3907 and below same could see a test of 3886 level, And resistance is now likely to be seen at 3947, a move above could see prices testing 3966.

Mustard Seed settled flat due to higher production estimates and subdued demand. All India mustard acreage for 2018-19 is reported at 34.70 lakh hectares which is 6.34 per cent lower than 2017-18 acreage of 37.05 lakh hectares.

Despite higher MSP of mustard, acreage has fallen due to lower availability of water. However, acreage may increase in the coming days depending upon the water availability. Mustard production target for 2018-19 is 84.86 lakh metric tonnes.

According to the fourth advance estimate of government, India mustard production estimate for 2017-18 is 83.22 lakh metric tonnes which is 5.11 percent higher than the 2016-17 production estimate of 79.17 lakh metric tonnes.

Traders have adopted a cautious attitude amid fears of rains/hailstorm in coming days in northwest and central India in the coming days. Mustard seed acreage grew 3% to 6.88 million hectares until January 23, according to agriculture ministry data.

NAFED sold 7,566 tons mustard seed in Haryana, Rajasthan, Madhya Pradesh and West Bengal at Rs 3,611-3,801 per quintal as per quality. The cooperative agency is still holding 160,340 tons mustard seed.

Mustard seed crushing by millers of the country fell 27% in January to 400,000 tons from 550,000 tons a month ago due to poor demand of rapeseed meal from exporters, data from Mustard Oil Producers Association (MOPA) showed.In Alwar spot market in Rajasthan the prices dropped 12.9 Rupees to end at 4121.55 Rupees per 100 kg.

Trading Ideas:

–Mustard Seed trading range for the day is 3886-3966.
–Mustard Seed settled flat due to higher production estimates and subdued demand.
–All India mustard acreage for 2018-19 is reported at 34.70 lakh hectares which is 6.34 per cent lower than 2017-18 acreage of 37.05 lakh hectares.
–India mustard production estimate for 2017-18 is 83.22 lakh metric tonnes which is 5.11 percent higher.
–In Alwar spot market in Rajasthan the prices dropped 12.9 Rupees to end at 4121.55 Rupees per 100 kg.

Courtesy: Kedia Commodities