NCDEX Mustard Seed under short covering; Support seen at 4325
Commodity Online | May 26 2020
UPDATED 11:30:12 IST

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NCDEX Mustard Seed under long liquidation; Resistance seen at 6183

Technically Mustard Seed market is under short covering as market has witnessed drop in open interest by 0.31% to settled at 12870 while prices up 18 rupees.

Now NCDEX Mustard Seed is getting support at 4325 and below same could see a test of 4293 levels, and resistance is now likely to be seen at 4381, a move above could see prices testing 4405.

Mustard Seed yesterday settled up by 0.41% at 4358 on profit booking after prices gained amid a smaller crop and limited supply.

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.

Arrivals of the oilseed in April 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. During Nov-Apr, mustard oil imports fell sharply to 17,000 tn, from 44,167 tn a year ago, according to The Solvent Extractors' Association of India.

Total imports in 2018-19 were around 59,000 tn. Imports are down due to the coronavirus pandemic and ample stocks of edible oils in domestic markets.

The government had procured 411,152 tn of mustard harvested in 2019-20 (Jul-Jun) under the price support scheme from farmers in Gujarat, Rajasthan, the top grower, Haryana, Uttar Pradesh, and Madhya Pradesh, a government official said.

Trading Ideas:
--Mustard Seed trading range for the day is 4293-4405.
--Mustard Seed prices dropped on profit booking after prices gained amid a smaller crop and limited supply.
--In recent session prices gained because of lower-than-expected supply of fresh crop in spot markets following restrictions due to coronavirus.
--Arrivals of the oilseed in April were at just over 980,000 tn, compared with 1.55 mln tn a year ago.
--In Alwar spot market in Rajasthan the prices gained 38.6 Rupees to end at 4694.5 Rupees per 100 kg.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 2 11200.00
Coconut Oil 0.1 18900.00
Arecanut 266 39771.00
Sugar 197 3282.00

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