Technically Mustard Seed market is under fresh buying as market has witnessed gain in open interest by 14.17% to settled at 57620 while prices up 19 rupees.
Now NCDEX Mustard Seed is getting support at 3902 and below same could see a test of 3881 level, and resistance is now likely to be seen at 3946, a move above could see prices testing 3969.
Mustard Seed on NCDEX settled up 0.49% at 3923 amid lower arrivals in physical market and fresh buying from crushing units to meet the demand. The recent reports of hailstorm and rains across producing regions of Rajasthan generated fears of adverse impact on standing crop.
There is higher possibility for slight jump in carry forward inventory over previous year, therefore chances of sharp upside rallies seem quite low in near term. As per data released by MOPA, with the new season arrivals is just above 50 lt.
In its 3rd adv estimates, mustard production revises higher to 87.82 lt from 83.97 lt in 2nd estimate. USDA maintain export forecast of rapemeal to 9 lt and output in 2019/20 at 77 lt (Vs 80 lt ) in its monthly report.
As per SEA, rape meal exports also down 23% to 2.5 lt during the first quarter of 2019/20 compared to 3.2 lt last year. For June, rape meal exports are provisionally kept at 54,250 tonnes, down by more than 40% on year.
India exported about 19519 tons of rapeseed meals during May 2019 against the 120630 tons of prior month. Mills across the country crushed 750,000 tn of mustard seeds in May, 16.7% lower from a year earlier, according to data compiled by the Mustard Oil Producers Association of India.
--Mustard Seed trading range for the day is 3881-3969.
--Mustard Seed gained amid lower arrivals in physical market and fresh buying from crushing units to meet the demand.
--As per data released by MOPA, with the new season arrivals is just above 50 lt.
--USDA maintain export forecast of rapemeal to 9 lt and output in 2019/20 at 77 lt (Vs 80 lt ) in its monthly report.
--In Alwar spot market in Rajasthan the prices gained 38.6 Rupees to end at 4076.5 Rupees per 100 kg.
Courtesy: Kedia Commodities