NCDEX Mustard Seed under fresh selling; Resistance seen at 5416
Commodity Online | March 05 2021
UPDATED 11:30:43 IST

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Technically Mustard Seed market is under fresh selling as market has witnessed gain in open interest by 0.38% to settled at 42180 while prices down 103 rupees.

Now NCDEX Mustard Seed is getting support at 5307 and below same could see a test of 5267 levels, and resistance is now likely to be seen at 5416, a move above could see prices testing 5485.

Mustard Seed yesterday settled down by 1.89% at 5347 as the mustard sowing was excellent this year and production is expected to be better with favorable weather.

However downside seen limited due to better demand as millers remain in the procurement due to the pipeline being empty. The arrival of new crops has started increasing in the mandis.

The daily arrival of mustard in the current weekend was 1.85 lakh kattas. The daily arrival of new mustard in the mandis of Rajasthan has reached 70 thousand kattas.

Mustard is getting up to 7/15 percent moisture. The weather is changing, so the moisture content is expected to decrease soon. The daily arrival of new mustard in the mandis of Uttar Pradesh is increasing day by day.

The latest Government data shows that the planted area in Mustard or RM seed has so far reached 73.25 Lakh hectares as against 68.64 Lakh hectares during last year’s corresponding period.

The government aims to take the area under mustard to around 80 lakh hectares this year, under the Oilseeds Mission program. The mustard crop continues providing better prices to farmers than the MSP till now.

India’s 2020-21 mustard crop may touch 100 lakh ton-level due to higher sowing and conducive weather. The sowing of oilseed crops has increased to 81.80 lakh hectares in the current Rabi whereas till this time last year, it was sown only in 77.79 lakh hectares. In Alwar spot market in Rajasthan the prices gained 52.15 Rupees to end at 5590 Rupees per 100 kg.

Trading Ideas:
--Mustard Seed trading range for the day is 5267-5485.
--Mustard Seed dropped as the mustard sowing was excellent this year and production is expected to be better with favorable weather.
--However downside seen limited due to better demand as millers remain in the procurement due to the pipeline being empty.
--The arrival of new crops has started increasing in the mandis. The daily arrival of mustard in the current weekend was 1.85 lakh kattas.
--In Alwar spot market in Rajasthan the prices gained 52.15 Rupees to end at 5590 Rupees per 100 kg.

Courtesy: Kedia Commodities
Commodity Arrivals Rate
Mustard Oil 1 12500.00
Ghee 9 43000.00
Coconut Oil 0.1 18100.00
Tamarind Seeds 25 3150.00

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