RM Seed on NCDEX settled down -1.36% at 4510 on improved demand and oversupply woes. With commencement of winter season in the upcoming 1-2 months consumption of mustard oil is likely to rise. It may push up demand for mustard seeds among buyers providing support to the prices. Moreover, at lower levels pick up in buying activity is expected among oil millers and processors. There are reports of timely rains in EU rapeseed crops, which will enhance production after dry weather during sowing season. According to latest USDA report, rapeseed crop is lowered for the European Union and Russia, offsetting a modest increase in Canada.
Widespread showers over in Europe boosted rapeseed crop development after, but drought prompted farmers to sow less. The world production is forecasted at 66.86 million tons for 2016/17 season. Driven by higher yield of mustard seed, India’s oilseed production is seen higher by about 7 lakh tonnes (lt) for the year 2015-16 rabi season, according to the industry estimates. The COOIT has pegged the overall rabi oilseed crop for 2015-16 at 77.41 lt – about 7.47 lt higher from the previous year’s 69.94 lt. Canadian canola processors are running at close to full capacity, with a near record weekly crush posted during the week ended September 21.
Technically market is under fresh selling as market has witnessed gain in open interest by 14.39% to settled at 49200 while prices down -62 rupee, now Rmseed is getting support at 4473 and below same could see a test of 4435 level, And resistance is now likely to be seen at 4573, a move above could see prices testing 4635.
--Rmseed trading range for the day is 4435-4635.
--Mustard seed prices ended with losses on improved demand and oversupply woes.
--With commencement of winter season in the upcoming 1-2 months consumption of mustard oil is likely to rise.
--NCDEX accredited warehouses mustard seed stocks dropped by 513 tonnes to 13079 tonnes.
--In Alwar spot market in Rajasthan the prices dropped -25.75 rupees to end at 4771.75 rupees per 100 kg.
Courtesy: Kedia Commodities