Fundamental Analysis
Mustard seed futures (July Contract) opened at Rs 534.10/20 kg and fell initially on account of poor demand of oilseeds from millers on Monday.
However, prices improved before an hour closing the market on short covering and managed to close at 535.20 levels.
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 higher at Rs. 535.20 per 20 Kg on Monday; its high of the day was 535.70 and touched a low of 532.20.
Prices closed above its 10 Days & its 20 Days EMA. 14-Days RSI is at 56.92.
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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