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Wednesday, October 27, 2021

NCDEX Mustard Seed under long liquidation; Support seen at 8553

Technically Mustard Seed market is under long liquidation as market has witnessed drop in open interest by 4.28% to settled at 43600 while prices down 3 rupees.

Now NCDEX Mustard Seed is getting support at 8553 and below same could see a test of 8499 levels, and resistance is now likely to be seen at 8648, a move above could see prices testing 8689.

Mustard Seed yesterday settled down by 0.03% at 8607 after it took several measures to boost domestic supply and curb hoarding. Statistics Canada cut its canola production estimate to a 13-year low, due to drought.

Prices seen supported as Government has increased the Mustard seed MSP from 4650.00 to 5050 i.e Rs.400 per quintal for RMS 2022-23. Support also seen amid regular demand from the stockists and lowering all India arrivals.

In their August report, the IGC lowered their forecast for the world rapeseed production to 70.9 million tons (-2.2 compared to July and 72.1 compared to 2020/21). The rapeseed production in Canada will be 16 million tons (-2.8 and 18.7), 4.5 million tons in Australia (4.2 and 4.1), 2.8 million tons in Ukraine (2.7 and 2.7).

USDA estimates Canada rapeseed production for marketing year 2021/22 at 16.0 million metric tons (mmt), down 4.2 mmt (21 percent) from last month, 3.0 mmt (16 percent) from last year, and 20 percent below the 5-year average.

Harvested area is estimated at 8.7 million hectares, down 3 percent from last month, but 4 percent above last year, and roughly equivalent to the 5-year average.

The month-to-month decrease in area is due to the expectation of weather-related abandonment with prospects for hay being the best use. In Alwar spot market in Rajasthan the prices gained 141.6 Rupees to end at 8818.5 Rupees per 100 kg.

Trading Ideas:
–Mustard Seed trading range for the day is 8499-8689.
–Mustard Seed dropped after it took several measures to boost domestic supply and curb hoarding.
–Statistics Canada cut its canola production estimate to a 13-year low, due to drought.
–Government has increased the Mustard seed MSP from 4650.00 to 5050 i.e Rs.400 per quintal for RMS 2022-23.
–In Alwar spot market in Rajasthan the prices gained 141.6 Rupees to end at 8818.5 Rupees per 100 kg.

Courtesy: Kedia Commodities

Source: Comodity Online

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