NCDEX Mustard Seed under long liquidation; Support seen at 3905

Technically Mustard Seed market is under long liquidation as market has witnessed drop in open interest by 49.61% to settled at 5120 while prices down 55 rupees.

Now Mustard Seed is getting support at 3905 and below same could see a test of 3866 level, And resistance is now likely to be seen at 3994, a move above could see prices testing 4044.

Mustard Seed on NCDEX settled down by 1.38% at 3944 due to higher production estimates and subdued demand. Traders have adopted a cautious attitude amid fears of rains/hailstorm in coming days in northwest and central India in the coming days.

Mustard seed acreage grew 3% to 6.88 million hectares until January 23, according to agriculture ministry data. NAFED sold 7,566 tons mustard seed on Monday in Haryana, Rajasthan, Madhya Pradesh and West Bengal at Rs 3,611-3,801 per quintal as per quality.

The cooperative agency is still holding 160,340 tons mustard seed. Mustard seed crushing by millers of the country fell 27% in January to 400,000 tons from 550,000 tons a month ago due to poor demand of rapeseed meal from exporters, data from Mustard Oil Producers Association (MOPA) showed.

There was ample stock of rapeseed meal in the market due to lower outward shipments in December and milers crushed lower quantity.  India’s December rapeseed meal exports fell 34% on year to 45,616 tons, data from Solvent Extractors Association of India (SEA) showed.

During March-April total arrivals of mustard seed across the country stood at 7.34 million tons while millers crushed 6.9 million tons leaving a balance of 440,000 with millers and stockists, said traders.

Apart from this farmers were holding a stock of nearly 110,00 tons and NAFED of 200,000 tons, data showed. In Alwar spot market in Rajasthan the prices dropped 51.5 Rupees to end at 4115.15 Rupees per 100 kg.

Trading Ideas:
–Mustard Seed trading range for the day is 3866-4044.
–Mustard seed prices dropped due to higher production estimates and subdued demand.
–Mustard Seed acreage grew 3% to 6.88 million hectares until January 23, according to agriculture ministry data.
–NCDEX accredited warehouses mustard seed stocks dropped by 594 tonnes to 3754 tonnes.
–In Alwar spot market in Rajasthan the prices dropped 51.5 Rupees to end at 4115.15 Rupees per 100 kg.

Courtesy: Kedia Commodities