Technically NCDEX Mustard Seed is getting support at 3990 and below same could see a test of 3979 level, And resistance is now likely to be seen at 4018, a move above could see prices testing 4035.
Mustard Seed on NCDEX settled down by 0.27% at 4000 as poor demand from millers for producing oil and rapeseed meal kept buyers on the sideline. In recent session, prices seen under pressure amid reports of sale by NAFED and weak demand in spot market.
India’s mustard acreage is likely to rise 6.5% on year to 6.7 mln ha in 2018-19 (Jul-Jun), as per the average of the estimates. The likely rise is seen on the back of a higher minimum support price and as farmers preferred sowing mustard over pulses in some parts of the country.
The expected rise in area under mustard seed this year is also because of a fall in temperatures in Rajasthan, the largest grower, which is favourable for the oilseed, agricultural scientists said. In Rajasthan, mustard acreage is likely to increase to over 2.3 mln ha from 1.9 mln ha last year, Agarwal said.
Farmers across the country had sown mustard across 5.79 mln ha as of Thursday, up 4.3% from a year ago, according to latest data released by the farm ministry. Last year, mustard acreage was at 6.7 mln ha, according to government data.
Mustard production target for 2018-19 is 84.86 lakh metric tonnes. According to the fourth advance estimate of government, India mustard production estimate for 2017-18 is 83.22 lakh metric tonnes which is 5.11 percent higher than the 2016-17 production estimate of 79.17 lakh metric tonnes. In Alwar spot market in Rajasthan the prices dropped -10 Rupees to end at 4140.9 Rupees per 100 kg.
--Mustard Seed trading range for the day is 3979-4035.
--Mustard Seed prices dropped as poor demand from millers for producing oil and rapeseed meal kept buyers on the sideline.
--India’s mustard acreage is likely to rise 6.5% on year to 6.7 mln ha in 2018-19 (Jul-Jun), as per the average of the estimates.
--NCDEX accredited warehouses mustard seed stocks dropped by 232 tonnes to 5247 tonnes.
--In Alwar spot market in Rajasthan the prices dropped 10 Rupees to end at 4140.9 Rupees per 100 kg.
Courtesy: Kedia Commodities