Fresh selling seen in RM Seed, open interest up by 3.29%
Commodity Online | June 02 2016
UPDATED 17:32:27 IST

NCDEX Chana under fresh buying; Support seen at 5056

MCX Cotton under fresh buying; Support seen at 17950

NCDEX Jeera under fresh selling; Resistance seen at 14140

NCDEX Turmeric under fresh selling; Support seen at 5844

MCX Mentha Oil likely to move in a range of 935.3-958.9


Mustard Seed on NCDEX settled down by -1.27% at 4446 due to weak demand for Indian rapeseed in export market. In Canada, farmers were expected to cut sowings of the rapeseed variant by 4% this year to a five-year low of 7.8 million hectares due to attack of disease and pests. The Europe's rapeseed harvest will fall this summer after frost hit crops in Poland while insect damage is causing concern in France and Britain.

According to latest Apr'16 USDA report, global rapeseed production is forecast to decline in 2016/17 to 66.15 million tons. In 2015-16, the production is pegged at 68.23 million tons. Rapeseed meal exports from India slipped 79.59% to 14,163 tons in April compared to 69,398 tons a month ago, data released from Solvent Extractors Association of India (SEA) showed. New arrivals were reported in the range of 2-2.50 lakh bags today. The latest survey report from SEA OF INDIA, the total mustard seed crop for marketing year 2015-16 is estimated at 57.28 lakh tonnes against 50 lakh tonnes of the last year in the same period.

The total crop size of Rajasthan is estimated at 26.02 lakh tonnes against 23.02 lakh tonnes of the previous year. 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. In Nizamabad maize spot prices gained 2.45 rupees to 1565.55 rupees per 100kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 3.29% to settled at 50930, now Rmseed is getting support at 4417 and below same could see a test of 4387 level, and resistance is now likely to be seen at 4498, a move above could see prices testing 4549.

Trading Ideas:
--Rmseed trading range for the day is 4387-4549.
--Mustard seed prices ended with losses due to weak demand for Indian rapeseed in export market.
--According to latest Apr'16 USDA report, global rapeseed production is forecast to decline in 2016/17 to 66.15 million tons.
--NCDEX accredited warehouses mustard seed stocks gained by 61 tonnes to 50630 tonnes.
--In Alwar spot market in Rajasthan the prices remains unchanged at0 rupees to end at 4488.5 rupees per 100 kg.

Courtesy: Kedia Commodities