Technically Mustard Seed market is under short covering as market has witnessed drop in open interest by 12.23% to settled at while prices up 65 rupees.
Now NCDEX Mustard Seed is getting support at 8414 and below same could see a test of 8349 levels, and resistance is now likely to be seen at 8526, a move above could see prices testing 8573.
Mustard Seed yesterday settled up by 0.77% at 8478 due to deficient stocks and peak consumption season.
Mustards stocks dwindle to 30Lakh tonnes with about 5-6 months remaining for new arrival season. Statistics Canada cut its canola production estimate to a 13-year low, due to drought.
Prices seen supported as Government has increased the Mustard seed MSP from 4650.00 to 5050 i.e Rs.400 per quintal for RMS 2022-23. Support also seen amid regular demand from the stockists and lowering all India arrivals.
In their August report, the IGC lowered their forecast for the world rapeseed production to 70.9 million tons (-2.2 compared to July and 72.1 compared to 2020/21).
The rapeseed production in Canada will be 16 million tons (-2.8 and 18.7), 4.5 million tons in Australia (4.2 and 4.1), 2.8 million tons in Ukraine (2.7 and 2.7).
USDA estimates Canada rapeseed production for marketing year 2021/22 at 16.0 million metric tons (mmt), down 4.2 mmt (21 percent) from last month, 3.0 mmt (16 percent) from last year, and 20 percent below the 5-year average.
Harvested area is estimated at 8.7 million hectares, down 3 percent from last month, but 4 percent above last year, and roughly equivalent to the 5-year average. In Alwar spot market in Rajasthan the prices gained 25.75 Rupees to end at 8767 Rupees per 100 kg.
Trading Ideas:
–Mustard Seed trading range for the day is 8349-8573.
–Mustard Seed prices seen supported due to deficient stocks and peak consumption season.
–Statistics Canada cut its canola production estimate to a 13-year low, due to drought.
–Government has increased the Mustard seed MSP from 4650.00 to 5050 i.e Rs.400 per quintal for RMS 2022-23.
–In Alwar spot market in Rajasthan the prices gained 25.75 Rupees to end at 8767 Rupees per 100 kg.
Courtesy: Kedia Commodities
Source: Comodity Online
