MCX Crude Palm Oil under fresh selling; Support seen at 535.3
NCDEX Ref. Soya Oil under fresh buying; Resistance seen at 744
NCDEX Soyabean under fresh selling; Support seen at 3691
MCX Zinc under long liquidation; Support seen at 191.2
MCX Nickel likely to move in a range of 900.8-959.8
Technically Mustard Seed market is under short covering as market has witnessed drop in open interest by 9.18% to settled at 20180 while prices up 22 rupees.
Now NCDEX Mustard Seed is getting support at 3818 and below same could see a test of 3789 level, And resistance is now likely to be seen at 3872, a move above could see prices testing 3897.
Mustard Seed on NCDEX settled up 0.58% at 3846 on short covering after prices dropped on expectation of higher production prospects this year. Mustard production is forecast about 84 lakh tonnes, up 1% y/y, in second advance estimate for 2018-19 by Government.
As per SEA, the production will be higher by about 19% this season to over 81 lakh tonnes due to better climate and higher area. According to data compiled by the Mustard Oil Producers Association of India, mustard oil mills across the country crushed 500,000 tn of the oilseed in February, up 33.3% on year.
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Crushing of the oilseed is 25% higher on month. Around 200,000 tn of new mustard crop had hit the market in February along with 60,000 tn of old crop. On the import front, rape oil imports in January are down by 43.5% on year to 9,434 tonnes.
Rapeseed meal exports are higher by 37% on year in January to 34,270 tonnes. For Apr-Jan, India’s rapemeal exports up by 84% on year at 8.98 lt. January and February months are lean season for rapemeal exports.
Mustard oil mills across the country crushed 400,000 tn of the oilseed in January, up 23.1% on year, according to data compiled by the Mustard Oil Producers Association of India. Upbeat demand from mustard meal exporters ramped up the crushing operations, the official said.
Trading Ideas:
–Mustard Seed trading range for the day is 3789-3897.
–Mustard Seed gained on short covering after prices dropped on expectation of higher production prospects this year.
–Mustard production is forecast about 84 lakh tonnes, up 1% y/y, in second advance estimate for 2018-19 by Government.
–As per SEA, the production will be higher by about 19% this season to over 81 lakh tonnes due to better climate and higher area.
–In Alwar spot market in Rajasthan the prices gained 17 Rupees to end at 4025 Rupees per 100 kg.
Courtesy: Kedia Commodities
Source: Commodityonline.com
