NCDEX Mustard Seed may trade between 6791-7189 levels
Commodity Online | May 05 2021
UPDATED 11:30:22 IST

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MCX Nickel likely to move in a range of 1304.7-1343.7

MCX Zinc under fresh buying; Resistance seen at 237.8

MCX Copper under fresh buying; Support seen at 790.6

Technically Mustard Seed market is under short covering as market has witnessed drop in open interest by 8.41% to settled at 49850 while prices up 129 rupees.

Now NCDEX Mustard Seed is getting support at 6913 and below same could see a test of 6791 levels, and resistance is now likely to be seen at 7112, a move above could see prices testing 7189.

Mustard Seed yesterday settled up by 1.87% at 7034 as crushing as increased due to rise in mustard oil demand. A total of 1.2 million tonnes of mustard crushing occurred in the country in March 2021 compared to 5.50 lakh tonnes in the month of February.

Whereas, the stock of mustard with farmers is estimated to be 62.50 lakh tonnes and processors and stockists have a stock of six lakh tonnes of mustard. The arrival of mustard in February was 4.50 lakh tonne while in March it reached 17.7 million tonne.

India mustard output this year is projected at 104.27 lakh tonnes. However, the Central Organisation for Oil Industry and Trade (COOIT) and the Mustard Oil Producers' Association (MOPA) have estimated the production at 89.50 lakh tonnes.

As per USDA, World Mustard seed production is estimated to remain steady at 689 lakh tonnes in 2020-21. The beginning stock estimated to fall by 25% y-o-y, taking the total supply to decline by 2% to 923 lakh tonnes as compared to 944 lakh tonnes recorded in the last year.

Total consumption and ending stocks are also estimated to be lower by 1% and 29% respectively. World export is also estimated to increase by 5% to 162 lakh tonnes as compared to 155 lakh tonnes last year. In Alwar spot market in Rajasthan the prices dropped 206 Rupees to end at 7325 Rupees per 100 kg.

Trading Ideas:
--Mustard Seed trading range for the day is 6791-7189.
--Mustard Seed prices gained as crushing as increased due to rise in mustard oil demand.
--A total of 1.2 million tonnes of mustard crushing occurred compared to 5.50 lakh tonnes.
--The stock of mustard with farmers is estimated to be 62.50 lakh tonnes and processors and stockists have a stock of six lakh tonnes of mustard.
--In Alwar spot market in Rajasthan the prices dropped 206 Rupees to end at 7325 Rupees per 100 kg.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 5 17200.00
Coconut Oil 0.1 19100.00
Tamarind Seeds 20 3450.00
Tamarind 4 10000.00

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