Technically NCDEX Mustard Seed is under short covering as market has witnessed drop in open interest by -3.31% to settled at 71520 while prices up 4 rupees.
Now Rmseed is getting support at 3571 and below same could see a test of 3548 level, And resistance is now likely to be seen at 3613, a move above could see prices testing 3632.
Mustard seed prices gained on tight supplies in the physical market and improving crushing demand. Meal exports from the country during last month jumped which improves demand for oilseed.
Mustard meal exports have increase 1275% in May this year at 42,488 tonnes compared to last year in May.
Last year, India exports about 3,090 tonnes of meals in May. The arrivals have been lower last week in the physical market.
As per data, the mustard arrivals down to 32,344 tonnes, last week compared to 59,125 tonnes in the previous week.
As per third advance estimates, the production of most important rabi oilseed, rapeseed & mustard, is expected to increase by 12 lt to 79.8 lt compared to last year.
Rape/mustard seed's exports during May also spurted to 42,488 tons as compared to 3,090 tons in May 2015, data released by SEA showed.
The US Department of Agriculture extended the round of downgrades to the European Union rapeseed harvest, citing "drought in Western Europe."
The USDA, unveiling its monthly flagship WASDE crop supply and demand report, downgraded by 200,000 tonnes to 21.1m tonnes its forecast for the EU rapeseed crop.
While raising slightly its forecast for EU rapeseed area, the forecast for the yield was trimmed by 0.05 tonnes per hectare to a below-average 3.18 tonnes per hectare, thanks to dry weather.
--Rmseed trading range for the day is 3548-3632.
--Mustard seed prices gained on tight supplies in the physical market and improving crushing demand.
--Mustard seed's exports during May also spurted to 42,488 tons as compared to 3,090 tons in May 2015, data released by SEA showed.
--NCDEX accredited warehouses mustard seed stocks dropped by 30 tonnes to 40992 tonnes.
--In Alwar spot market in Rajasthan the prices dropped -12.9 Rupees to end at 3690.25 Rupees per 100 kg.
Courtesy: Kedia Commodities