Mustard Seed short term may move up

Fundamental Analysis
Mustard seed futures closed slightly higher on account of short covering and delayed monsoon. Firm physical market also provided support to bulls in the market.

Oil meal exports declined to 1, 97,593 metric tonnes in June 2009, down 33% as compared to 2, 95,204 metric tonnes in June 2008.

While, during the first three months of financial year (April-June, 2009) total oil meal export was 6,14,528 metric tonnes, down 57% on corresponding period last year.

India exported 1,09,923 metric tonnes of soy meal, 58, 805 tonnes of rape/mustard seed meal, 12580 tonnes of rice bran meal and 16046 tonnes of castor meal in June 2009.

Technical Analysis
Prices (NCDEX Aug Contract) closed higher at Rs. 527.50 per 20 Kg on Monday; its high of the day was 536.95 and touched a low of 527.95 levels.

Prices closed below its 10 Days & its 20 Days EMA. 14-Days RSI is at 46.35.

Outlook
Mustard Seed prices are expected to trade slightly higher on short covering for short term. However, for medium term, prices may move northwards on account of festivals demand.

Courtesy: Angel Commodities