MCX Crude Palm Oil likely to move in a range of 578.9-596.7
NCDEX Ref Soy Oil under fresh buying; Resistance seen at 751
NCDEX Soyabean under fresh selling; Support seen at 3254
MCX Crude Oil expected to trade in a range between 5174-5316
Copper market under long liquidation; Support seen at 444.5
Technically Mustard Seed market is under fresh buying as market has witnessed gain in open interest by 26.66% to settled at 15110 while prices up 3 rupees.
Now NCDEX Mustard Seed is getting support at 4226 and below same could see a test of 4210 level, And resistance is now likely to be seen at 4257, a move above could see prices testing 4272.
Mustard seed settled flat due to sufficient stocks in the physical market. However, the downside seen limited on expectation of improved export demand for meal but fresh physical arrivals from the NAFED stocks sale may suppress the prices.
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 lt. According to MOPA, country crushed about 5 lt 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).
Moreover, ongoing sell off in soybean futures also adding pressure to mustard seed prices as of now. Arrivals of RM seed has been shrinking gradually hovering near about 45000 – 65000 bags of 85kg each in Rajasthan.
Increased export of rape seed meal could cap the excessive losses. Rape seed meal export from India surged by 12% m/m and 24% y/y during month of Aug reported at 88.23 thousand tonnes as per data released by Solvent extractors association of India.
Trading Ideas:
–Mustard Seed trading range for the day is 4210-4272.
–Mustard Seed settled flat due to sufficient stocks in the physical market.
–India’s rapeseed meal export jumped to 88,236 tons during August registering a rise of 24% from its July levels.
–NCDEX accredited warehouses mustard seed stocks dropped by 201 tonnes to 20447 tonnes.
–In Alwar spot market in Rajasthan the prices dropped 12.9 Rupees to end at 4308.25 Rupees per 100 kg.
Courtesy: Kedia Commodities
Source: Commodityonline.com
