NCDEX Mustard Seed under short covering; Support seen at 4242
Commodity Online | May 21 2020
UPDATED 11:30:35 IST

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Technically Mustard Seed market is under short covering as market has witnessed drop in open interest by 1.33% to settled at 13370 while prices up 35 rupees.

Now NCDEX Mustard Seed is getting support at 4242 and below same could see a test of 4204 levels, and resistance is now likely to be seen at 4309, a move above could see prices testing 4338.

Mustard Seed yesterday settled up by 0.82% at 4280 amid expectation of fall in output during the current rabi season. The procurement of mustard in the ongoing season is gradually gathering pace despite the nationwide lockdown.

"About 3,757 metric tonne of mustard seeds worth Rs 17 crore have already been bought by GUJCOMASOL," said Ashwani Kumar, Secretary to the Chief Minister.

As per the latest data available with Union Ministry of Agriculture and Farmers Welfare, agency has procured 3.40 lakh tonnes of mustard from five states, namely Rajasthan, Madhya Pradesh, Uttar Pradesh, Gujarat and Haryana. Unable to get the minimum support price for mustard, farmers in Punjab have been withholding the crop for a month.

In Rajasthan, mustard is being bought at MSP. However, in Punjab farmers are not being paid fixed rates. Government officials say since no Central agency is operating in Punjab, farmers have to sell their crop to private players.

This year, production is expected to be around 77/78 lakh tonnes by looking at sowing and weather across the country.

In Gujarat, procurement of mustard seed has got off to a very slow start with Gujcomasol managing to operationalise only four out of 14 procurement centres. The cooperative body has so far procured 111.65 quintal mustard seeds from 53 farmers.

Trading Ideas:
--Mustard Seed trading range for the day is 4204-4338.
--Mustard Seed prices gained amid expectation of fall in output during the current rabi season
--Mustard production has been revised downwards to 7.6 mln tn in 2019-20 (Jul-Jun) from 7.8 mln tn pegged in early March.
--About 3,757 metric tonne of mustard seeds worth Rs 17 crore have already been bought by GUJCOMASOL.
--In Alwar spot market in Rajasthan the prices remains unchanged by 0 Rupees to end at 4385.5 Rupees per 100 kg.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
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