Technically Mustard Seed market is under long liquidation as market has witnessed drop in open interest by 3.25% to settled at 18430 while prices down 2 rupees.
Now NCDEX Mustard Seed is getting support at 4701 and below same could see a test of 4683 levels, and resistance is now likely to be seen at 4741, a move above could see prices testing 4763.
Mustard Seed yesterday settled down by 0.04% at 4718 on late profit booking after prices seen supported as farmers sold their stock at the government procurement centres, lowering supply in spot markets. In recent session prices gained because of lower-than-expected supply of fresh crop in spot markets following restrictions due to coronavirus scare in the country.
European mustard seed prices drew additional support from news that a rapeseed crushing factory run by agribusiness group Archer Daniels Midland Co in Britain had been shut down after an explosion that injured three workers.
Prices also gained tracking rise in ICE prices on weather concerns in Western Canada. A patchwork of unfavorable weather conditions, from worries about drought in some areas to excessive rain in others, has raised concern about damage to crop development.
Farmers are also seen as holding onto stockpiles as they focus on field work, adding price support to the market. Arrivals of the oilseed were at just over 980,000 tn, compared with 1.55 mln tn a year ago, according to data from the Mustard Oil Producers Association of India.
The association has estimated India's mustard output in 2019-20 (Jul-Jun) at 7.6 mln tn, down from 8.1 mln tn in the previous crop year. This is lower than the farm ministry's third advance estimate of 8.7 mln tn.
--Mustard Seed trading range for the day is 4683-4763.
--Mustard Seed dropped on late profit booking after prices seen supported as farmers sold their stock at the government procurement centres, lowering supply in spot markets.
--Prices also gained tracking rise in ICE prices on weather concerns in Western Canada.
--China's rapeseed inventory totals 179,000 tonnes, down 37,000 tonnes or 17.13% from 216,000 tonnes last week.
--In Alwar spot market in Rajasthan the prices dropped 25 Rupees to end at 4900 Rupees per 100 kg.
Courtesy: Kedia Commodities