Technically Mustard Seed market is under short covering as market has witnessed drop in open interest by 4.18% to settled at 16730 while prices up 20 rupees.
Now Mustard Seed is getting support at 4750 and below same could see a test of 4721 levels, and resistance is now likely to be seen at 4803, a move above could see prices testing 4827.
Mustard Seed yesterday settled up by 0.42% at 4780 supported by firm demand for mustard oil in the domestic market, lower imports, and limited supply of the seed.Crushing of mustard seeds by mills in India rose 6.7% on year to 8 lakh tonnes, as per data from the Mustard Oil Producers Association of India.
Mustard crushing during the same period last year was at 7.5 lakh tonnes. Crushing of the rabi oilseed is over 26% higher from 6.5 lakh tonnes in April, an official with the association said. As per USDA, World Mustard seed production is estimated to increase by around 4% to 708 lakh tonnes during 2020-21 against 682 lakh tonnes seen during 2019-20.
However, beginning stock is expected to fall by around 26% to 67 lakh tonnes. Hence, the total supply is projected to rise only by around 1% to 925 lakh tonnes. Ending Stock is expected to increase by 3% to 69 lakh tonnes as compared to 67 lakh tonnes last year.
The production of Canola in EU revised, lowered by 20 lakh tonnes to 168 lakh tonnes, based largely on lower yields for Germany. The EU revision is offset by higher Australian canola production. NAFED has procured around 7.95 lakh tonnes of RM seed.
--Mustard Seed trading range for the day is 4721-4827.
--Mustard Seed prices gained supported by firm demand for mustard oil in the domestic market, lower imports, and limited supply of the seed.
--Crushing of mustard seeds by mills in India rose 6.7% on year to 8 lakh tonnes
--Around 3.39 lakh tonnes i.e. 43% of total procurement has been procured in Rajasthan, followed by Haryana 3.09 lakh tonnes
--In Alwar spot market in Rajasthan the prices remains unchanged by 0 Rupees to end at 4950 Rupees per 100 kg.
Courtesy: Kedia Commodities