Silver market under fresh selling; Support seen at 36852
Gold market under fresh selling; Support seen at 30325
MCX Crude Palm Oil under short covering; Support seen at 594.5
Ref. Soya Oil market under fresh Selling; Resistance seen at 735
NCDEX Soyabean under long liquidation
Technically Mustard Seed market is under long liquidation as market has witnessed drop in open interest by 1.37% to settled at 72770 while prices down 13 rupees.
Now NCDEX Mustard Seed is getting support at 4227 and below same could see a test of 4215 level, And resistance is now likely to be seen at 4257, a move above could see prices testing 4275.
Mustard Seed on NCDEX settled down 0.31% at 4240 tracking weakness in spot demand amid profit booking after prices gained on improved meal exports data, good crushing demand and diminishing supplies.
According to MOPA, country crushed about 5 lakh tonnes of mustard in August, 11% higher on year. However, last week it slipped to 9-weeks low on concern about higher supplies in physical market and pending decisions for meal exports to China.
NAFED started selling mustard seed in Rajasthan which had procured under the price support scheme in 2017-18 (Jul-Jun). Farmers, stockists and millers are also holding stocks with them. There has been tepid response from industry players in the auction held by NAFED to sell mustard seed stocks at MSP.
Mustard seed prices are already ruling much below to MSP at key trading centers which may pull down the futures prices any time in terms of basis correction. NAFED has procured about 8.5 lakh tones of mustard seed from different states and now releasing its stocks.
Moreover, ongoing sell off in soybean futures also adding pressure to mustard seed prices as of now. However, losses are likely to be limited due to lower production outlook. As per SEA data, India’s rapeseed meal exports up 24% on year to 88,236 tn in August due to good export demand. For Apr-Aug, India’s rape meal exports up by 107% on year at 4.90 lakh tonnes.
Trading Ideas:
–Mustard Seed trading range for the day is 4215-4275.
–Mustard Seed dropped tracking weakness in spot demand amid profit booking after prices gained on improved meal exports data and diminishing supplies.
–According to MOPA, country crushed about 5 lakh tonnes of mustard in August, 11% higher on year.
–NCDEX accredited warehouses mustard seed stocks dropped by 3935 tonnes to 27269 tonnes.
–In Alwar spot market in Rajasthan the prices dropped 10 Rupees to end at 4372.65 Rupees per 100 kg.
Courtesy: Kedia Commodities
Source: Commodityonline.com
