Technically NCDEX Mustard Seed is under long liquidation as market has witnessed drop in open interest by -0.52% to settled at 32760 while prices down -26 rupees.
Now Rmseed is getting support at 3923 and below same could see a test of 3908 level, And resistance is now likely to be seen at 3965, a move above could see prices testing 3992.
Mustard Seed on NCDEX settled down by -0.66% at 3939 on favourable weather in Rajasthan and weak demand for oil. Indian area under mustard was at 4.45 million hectare compared to 4.68 million in last year, the government data showed.
It is expected that there will be good physical demand for the domestic oilseed for crushing in coming months after increase in import duty for the edible oils.
As of 13th Nov, the area covered in Rajasthan has crossed 17.2 lakh ha compared to 20 lakh ha last year.
There is steady demand for rapeseed for crushing which is keeping prices steady. As per rabi sowing report from the government, the area under mustard as on 17 Nov 2017 acreage of mustard, another major rabi crop, was at 4.45 mln ha, down from 4.68 mln ha a year ago.
The area planted in Madhya Pradesh crossed 6.3 lakh ha compared to 5.2 lakh ha last year as farmers switched from rain dependent crops to mustard after poor rains in the state.
Support price for mustard in 2017-18 rose by 8.1% on year to 4,000 rupees per 100 kg. According to data compiled by Mustard Oil Producers Association of India, country is still holding about 20 lt of mustard from the last year as it is estimated that millers have crushed about 48 lt last year against the marketable surplus of 67.8 lt. In Alwar spot market in Rajasthan the prices dropped -51.5 Rupees to end at 3973.5 Rupees per 100 kg.
--Rmseed trading range for the day is 3908-3992.
--Mustard seed prices ended with losses on favourable weather in Rajasthan and weak demand for oil.
--Support price for mustard in 2017-18 rose by 8.1% on year to 4,000 rupees per 100 kg.
--NCDEX accredited warehouses mustard seed stocks gained by 1452 tonnes to 5252 tonnes.
--In Alwar spot market in Rajasthan the prices dropped -51.5 Rupees to end at 3973.5 Rupees per 100 kg.
Courtesy: kedia Commodities