Fundamental Analysis Jan Mustard seed futures closed lower owing to higher sowing acreage estimate of mustard seed this as compared to last year.
Global rape/mustard seed output is forecast at 56 million tonnes in 2008-09, up from 49 million tonnes last year. Rape/mustard oil production is forecast at 20.60 million tonnes in 2008-09, up from 19.4 million tonnes last year.
Significant gains are expected in Canada rapeseed (canola) production is projected at 11.3 million tonnes this year from 9.6 million tonnes last year. China’s output is projected at 11.50 million tonnes this year from 10.4 million tonnes last year. India’s Output projected at 6.2 million tonnes this year from 5.3 million tonnes last year. EU largest rapeseed producer projected at 18.90 million tonnes this year, up from 18.3 million tonnes last year.
Technical Analysis Prices (NCDEX Jan Contract) closed lower at 571.25 on Thursday; from its high of the day (577.00) and touched a low of 565.90.
Prices closed above its 10 Days & its 20 Days EMA. 14-Days RSI is at 53.42.
Prices are expected to trade sideways down with short-term support and resistance.
Outlook Mustard seed prices are expected to trade lower on weak sentiments of global market and higher sowing acreage estimates of mustard seed this year as compared to last year also in favor of bears.
Courtesy: Angel Commodities
