Mustard seed prices may fall

Fundamental Analysis

NCDEX September Mustard seed futures traded in a sideways manner, whereas, Spot prices witnessed weak sentiments due to a sharp fall in other oilseeds.

Domestic kharif oilseeds area so far been covered on 158.61 lakh hectares against 173.33 lakh hectare during corresponding period a year ago, as on August 28, 2009.

As per USDA monthly Supply and Demand Report, EU-27 rapeseed production is projected at a record 19.5 million tons, up 1.2 million due to better-than-expected yields reported during harvest, especially in Germany and Poland.

Technical Analysis

Prices (NCDEX September Contract) closed at Rs. 542.40 per 20 Kg on Tuesday; its high of the day was 544.40 levels and touched a low of 539.25 levels.

Prices closed below its 10 Days & above its 20 Days EMA. 14-Days RSI is at 39.09.

Outlook

Mustard Seed prices are expected to trade lower on weakness in other oilseeds and edible oils due to revival on monsoon rains during the these days. Higher import of edible oil and lower demand at retail ends may provide support to bears.

Courtesy: Angel Commodities

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