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Technically NCDEX Mustard Seed is getting support at 4032 and below same could see a test of 4001 level, And resistance is now likely to be seen at 4087, a move above could see prices testing 4111.
Mustard Seed on NCDEX settled up by 0.37% at 4063 on short covering after prices dropped prices dropped amid sufficient supplies, higher acreage in Rajasthan and reports of delay in meal exports to China on strict norms may restrict price surge.
Prices also seen under pressure amid reports of sale by NAFED and weak demand in spot market. According to the latest Rabi sowing progress report, as on now all India mustard acreage for 2018-19 is reported at 34.70 lakh hectares which is 6.34 per cent lower than 2017-18 acreage of 37.05 lakh hectares.
Despite higher MSP of mustard, acreage has fallen due to lower availability of water. However, acreage may increase in the coming days depending upon the water availability. Mustard production target for 2018-19 is 84.86 lakh metric tonnes.
According to the fourth advance estimate of government, India mustard production estimate for 2017-18 is 83.22 lakh metric tonnes which is 5.11 percent higher than the 2016-17 production estimate of 79.17 lakh metric tonnes.
The ongoing trade dispute between USA and China has created a lot of uncertainty and making China to look out to other countries for their requirements of oilmeals. China has allowed mustard meal imports from India.
However, strict quality parameters, export guidelines and registration formalities have dampened exports in the near term.
India’s rapeseed oil imports in the month of September 2018 is 11.996 thousand MT which is 51.05 percent lower than the import of August 2018 of 24.509 thousand MT. In Alwar spot market in Rajasthan the prices gained 10 Rupees to end at 4231 Rupees per 100 kg.
Trading Ideas:
–Mustard Seed trading range for the day is 4001-4111.
–Mustard Seed gained on short covering after prices dropped prices dropped amid sufficient supplies, higher acreage in Rajasthan and reports of delay in meal exports.
–All India mustard acreage for 2018-19 is reported at 34.70 lakh hectares which is 6.34 per cent lower than 2017-18 acreage of 37.05 lakh hectares
–NCDEX accredited warehouses mustard seed stocks dropped by 21 tonnes to 6708 tonnes.
–In Alwar spot market in Rajasthan the prices gained 10 Rupees to end at 4231 Rupees per 100 kg.
Courtesy: Kedia Commodities
Source: Commodityonline.com
