Fundamental Analysis
Mustard seed futures closed lower on account of poor demand of other oilseeds and edible oils on Tuesday.
India’s oil meal shipments in May declined 64% on year to 178350 metric tonnes, it happened due to lower demand from global livestock industry.
Rapeseed meal shipment fell to 87,472 metric tonnes during the month (down 22.50%), from 112,850 metric tonnes a year ago.
Technical Analysis
Prices (NCDEX July Contract) closed slightly lower at Rs. 533.55 per 20 Kg on Tuesday; its high of the day was 536.90 and touched a low of 533.00 levels.
Prices closed above its 10 Days & its 20 Days EMA. 14-Days RSI is at 54.27.
Outlook
Mustard Seed prices are expected to trade range bound amid subdued trading activity on lack of fresh fundamentals for short term. For medium term, prices are expected to move slightly higher owing slow pace of monsoon rains for kharif oilseeds. However, for long term, on account of higher sowing acreage estimates of other kharif oilseeds may provide support to bears in the market.
Courtesy: Angel Commodities
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