Fundamental Analysis

NCDEX April Mustard seed futures ended mildly higher on third consecutive day due to buying at lower levels.

Domestic Rabi oilseeds area so far been covered on 93.05 lakh hectare against 98.29 lakh hectare during corresponding period a year ago, as on March 04, 2010. If the yield is better prices may witness bearish sentiments.

Area under Rapeseed/Mustard Seed is reported at 64.92 lakh hectares against 66.87 lakh hectares a year ago, Groundnut at 9.86 lakh hectares against 9.50 lakh hectares, Sunflower sowing is reported at 8.78 lakh hectares against 11.42 lakh hectares in the corresponding period last year.

Technical Analysis

Prices closed above its 10 Day & its 20 Day EMA, which indicates bullish market sentiments.

14-Day RSI is at 56.21 which are in neutral zone.

Daily MACD is in positive territory.

Outlook

Mustard Seed prices are expected to trade range bound amid subdued trading activity on lack of fresh fundamentals (for short term). However, in the long term, overall it is expected to trade lower on account of higher global oilseeds output and huge import of edible oils may provide support to bears.

Courtesy: Angel Commodities

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