MCX Silver expected to trade in a range between 37817-38921
Gold market under fresh buying; Support seen at 30766
MCX Crude Palm Oil under long liquidation
NCDEX Ref. Soya Oil under fresh selling; Resistance seen at 748
NCDEX Soyabean likely to move in a range of 3129-3287
Technically Mustard Seed market is under fresh selling as market has witnessed gain in open interest by 57.51% to settled at 23800 while prices down 32 rupees.
Now NCDEX Mustard Seed is getting support at 4191 and below same could see a test of 4173 level, And resistance is now likely to be seen at 4239, a move above could see prices testing 4269.
Mustard Seed on NCDEX settled down by 0.75% at 4209 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.
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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. In Alwar spot market in Rajasthan the prices dropped 12.85 Rupees to end at 4295.4 Rupees per 100 kg.
Trading Ideas:
–Mustard Seed trading range for the day is 4173-4269.
–Mustard Seed prices dropped due to sufficient stocks in the physical market.
–However, the downside seen limited on expectation of improved export demand for meal.
–NCDEX accredited warehouses mustard seed stocks dropped by 101 tonnes to 20346 tonnes.
–In Alwar spot market in Rajasthan the prices dropped -12.85 Rupees to end at 4295.4 Rupees per 100 kg.
Courtesy: Kedia Commodities
Source: Commodityonline.com
