Mustard Seed on NCDEX settled up by 1.9% at 4774 on improved demand and on supply worries. The demand from oil millers and crushing units is expected to pick up at the prevailing levels due to recovery in the crush margin which may prompt oil millers and crushing units to replenish their stocks ahead of the festive demand in the ongoing month. Moreover, gradual decline in supplies at the domestic market may further support the prices. USDA in its latest report trimmed rapeseed crop production for European Union and Russia which is offsetting a modest increase in Canada. The world production of seed seen at 66.86 million tons for 2016-17 season.
Prices of seed will rise on hope of increasing physical demand from the stockists and industrial buyer and reports of higher MSP next season. As per official data, the overall sowing acreage of kharif oilseeds has been reported at 149.60 lakh hectares , up 6 % from last year. Moreover, weakness in mustard meal oilseeds also added selling in local mandies. As per the latest release from Solvent Extractors' Association of India , the export of oilmeals during June 2016 is reported at 0.43 lakh tons compared to 0.58 lakh tons of the last year in the same period.
In Alwar spot market in Rajasthan the prices gained 51.5 rupees to end at 4952 rupees per 100 kg.Technically market is under fresh buying as market has witnessed gain in open interest by 3% to settled at 59050 while prices up 89 rupee, now Rmseed is getting support at 4717 and below same could see a test of 4660 level, And resistance is now likely to be seen at 4814, a move above could see prices testing 4854.
--Rmseed trading range for the day is 4660-4854.
--Mustard seed prices gained on improved demand and on supply worries.
--USDA in its latest report trimmed rapeseed crop production for European Union and Russia which is offsetting a modest increase in Canada.
--NCDEX accredited warehouses mustard seed stocks dropped by 1384 tonnes to 28388 tonnes.
--In Alwar spot market in Rajasthan the prices gained 51.5 rupees to end at 4952 rupees per 100 kg
Courtesy: Kedia Commodities