MUMBAI (Commodity Online): RMseed prices witness resistance on higher levels due to profit booking. Prices have already risen too much to sustain on these levels. During past three days prices closed down due to profit booking.
We expect some more declines in this contract how ever any sharp decline is not expected. It is to be learnt that soybean prices rose more that 10 % in the past one month on good domestic demand. Technically RMseed November month has reached overbought region and prices must see some correction.
Trade commodities or equities from across the globe. Join Now
The positive international market due to rally in international crude oil prices and adverse weather in the US soybean growing areas supported the oilseeds complex sentiments. Rabi sowing is gradually picking up and India is expecting some increment in the RMseed sown area this year.
Increase in the area may be seen mainly in Rajasthan and UP. Till 22nd October 2009 the Rapeseed & mustard was sown on 8.63 lakh ha against 9.8 lakh ha same period last year giving bullish signal to the market. On Friday prices are expected to correct in the morning hours. In November month selling on higher levels seems better for day traders.
Courtesy: Religare Commodities
