Mustard Seed on NCDEX settled down by -0.3% at 4708 tracking weakness in spot demeand and other oil seed counters. However, 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 dropped -25.75 rupees to end at 4926.25 rupees per 100 kg.Technically market is under long liquidation as market has witnessed drop in open interest by -0.41% to settled at 56140 while prices down -14 rupee, now Rmseed is getting support at 4685 and below same could see a test of 4661 level, And resistance is now likely to be seen at 4739, a move above could see prices testing 4769.
--Rmseed trading range for the day is 4661-4769.
--Mustard seed dropped tracking weakness in spot demand and other oil seed counters.
--According to latest USDA report, rapeseed crop is lowered for the European Union and Russia, offsetting a modest increase in Canada.
--NCDEX accredited warehouses mustard seed stocks dropped by 402 tonnes to 27031 tonnes.
--In Alwar spot market in Rajasthan the prices dropped -25.75 rupees to end at 4926.25 rupees per 100 kg.
Courtesy: Kedia Commodities