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Technically NCDEX Mustard Seed is getting support at 3964 and below same could see a test of 3935 level, And resistance is now likely to be seen at 4010, a move above could see prices testing 4027.
Mustard Seed on NCDEX settled up by 0.48% at 3994 on short covering after prices dropped on reports of lower export of mustard seed meal. However, downside seen limited amid reports on diminishing stocks with farmers.
India’s mustard acreage is likely to rise 6.5% on year to 6.7 mln ha in 2018-19 (Jul-Jun), as per the average of the estimates. The likely rise is seen on the back of a higher minimum support price and as farmers preferred sowing mustard over pulses in some parts of the country.
The expected rise in area under mustard seed this year is also because of a fall in temperatures in Rajasthan, the largest grower, which is favourable for the oilseed, agricultural scientists said. In Rajasthan, mustard acreage is likely to increase to over 2.3 mln ha from 1.9 mln ha last year.
Farmers across the country had sown mustard across 5.79 mln ha, up 4.3% from a year ago, according to latest data released by the farm ministry. Last year, mustard acreage was at 6.7 mln ha, according to government data.
The Centre has fixed the minimum support price for mustard at 4,200 rupees per 100 kg for 2018-19 compared with 4,000 rupees the previous year.
Expectation that state governments might bring mustard under the Bhavanatar Bhugtan Yojana, when fresh arrivals begin in full swing, might also encourage farmers to sow more of the oilseed. In Alwar spot market in Rajasthan the prices dropped 6.45 Rupees to end at 4173.05 Rupees per 100 kg.
Trading Ideas:
–Mustard Seed trading range for the day is 3935-4027.
–Mustard Seed gained on short covering after prices dropped on reports of lower export of mustard seed meal.
–However, downside seen limited amid reports on diminishing stocks with farmers.
–NCDEX accredited warehouses mustard seed stocks dropped by 1318 tonnes to 4368 tonnes.
–In Alwar spot market in Rajasthan the prices dropped 6.45 Rupees to end at 4173.05 Rupees per 100 kg.
Courtesy: Kedia Commodities
Source: Commodityonline.com
