RMSeed on NCDEX settled down -1.08% at 4685 tracking weakness in spot demand on oversupply woes. Prices were down on higher supply after the government of India hiked rabi crop output to 14.41 million ton from actual output of 10.39 million ton a year ago on good monsoon rain. However, sharp gain in the rm seed prices was cushioned by hope of increasing physical demand from the stockists and industrial buyer and reports of higher MSP next season. Acc. to latest USDA report, rapeseed crop is raised to 67.16 mt compared to 66.5 mt in July with larger production estimates for Canada and Australia that more than offset reductions in the European.
Canada rapeseed exports are up 600,000 tons to 9.4 mt, on a larger production forecast and strong global demand. 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. 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.
Technically market is under long liquidation as market has witnessed drop in open interest by -4.03% to settled at 57330 while prices down -51 rupee, now Rmseed is getting support at 4655 and below same could see a test of 4625 level, And resistance is now likely to be seen at 4735, a move above could see prices testing 4785.
--RMSeed trading range for the day is 4625-4785.
--Mustard seed prices ended with losses tracking weakness in spot demand on oversupply woes.
--The government of India hiked rabi crop output to 14.41 million ton from actual output of 10.39 million ton a year ago on good monsoon rain.
--NCDEX accredited warehouses mustard seed stocks dropped by 461 tonnes to 29311 tonnes.
--In Alwar spot market in Rajasthan the prices gained 51.5 rupees to end at 4900.5 rupees per 100 kg.
Courtesy: Kedia Commodities