Technically Mustard Seed market is under long liquidation as market has witnessed drop in open interest by 16.11% to settled at while prices down 47 rupees.
Now NCDEX Mustard Seed is getting support at 8255 and below same could see a test of 8177 levels, and resistance is now likely to be seen at 8406, a move above could see prices testing 8479.
Mustard Seed yesterday settled down by 0.56% at 8332 after update Strategie Grains has increased its monthly forecast for this year’s European Union rapeseed harvest to 17.03 million tonnes from 16.93 million.
The latest estimate would be 2.5% above 2020’s output of 16.61 million tonnes, it said. The arrival of mustard has increased across the country. The purchase of crushing plants has slowed down due to the new arrival of soybean in the mandis.
On the other hand, import of edible oil has increased due to reduction in duty, which has also put pressure on mustard. However downside seen limited due to deficient stocks and peak consumption season.
Mustards stocks dwindle to 30Lakh tonnes with about 5-6 months remaining for new arrival season.
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).
In Alwar spot market in Rajasthan the prices gained 141.6 Rupees to end at 8479 Rupees per 100 kg.
–Mustard Seed trading range for the day is 8177-8479.
–Mustard Seed prices dropped after update Strategie Grains has increased this year’s EU rapeseed harvest forecast to 17.03 million tonnes.
–The arrival of mustard has increased across the country.
–The purchase of crushing plants has slowed down due to the new arrival of soybean in the mandis.
–In Alwar spot market in Rajasthan the prices dropped 55.4 Rupees to end at 8673 Rupees per 100 kg.
Courtesy: Kedia Commodities
Source: Comodity Online