Technically NCDEX Mustard Seed is under fresh selling as market has witnessed gain in open interest by 9.58% to settled at 44600 while prices down -27 rupees.
Now Rmseed is getting support at 4050 and below same could see a test of 4035 level, And resistance is now likely to be seen at 4085, a move above could see prices testing 4105.
Mustard Seed on NCDEX settled down by -0.66% at 4066 due to profit booking tracking weak physical demand. Currently, mustard is trading lower than its MSP due to reports good progress in sowing season and steady demand.
Currently the prices have been moving according to the winter demand but reports of lower acreage than last year and higher carry-over stocks are putting pressure in futures.
The acreage of mustard was down 6% till last week at 65.3 lakh ha, as per latest rabi sowing report by the government. Rajasthan is the largest mustard growing state but the sowing pace is slower than last year at 20.9 lakh ha Vs 28 lakh ha.
The area under the mustard crop across the country was at 6.5 mln ha, down 6.2% on year, according to data from the farm ministry. The acreage so far is, however, higher than the normal of 6.1 mln ha for the entire season.
Uneven showers during the southwest monsoon season has affected sowing in key growing areas, including top growing state Rajasthan, agricultural scientists said.
In key spot markets across the country, prices of mustard have slipped below the minimum support price of 3,700 rupees per 100 kg, prompting the National Agricultural Cooperative Marketing Federation of India to intervene and start procurement.
In Alwar spot market in Rajasthan the prices dropped -25.75 Rupees to end at 3973.5 Rupees per 100 kg.
--Rmseed trading range for the day is 4035-4105.
--Mustard seed prices dropped due to profit booking tracking weak physical demand.
--The acreage of mustard was down 6% till last week at 65.3 lakh ha, as per latest rabi sowing report by the government.
--NCDEX accredited warehouses mustard seed stocks dropped by 991 tonnes to 10422 tonnes.
--In Alwar spot market in Rajasthan the prices dropped -25.75 Rupees to end at 3973.5 Rupees per 100 kg.
Courtesy: Kedia Commodities