Mustard Seed is getting support at 3902 and below same could see a test of 3881 level, And resistance is now likely to be seen at 3938, a move above could see prices testing 3953.
Mustard Seed on NCDEX settled down by -0.25% at 3922 due to rise in arrivals, are seen declining sooner than expected. Higher acreage and a resultant larger crop are among the factors that will keep prices under pressure this season.
Farmers in the country had sown mustard across 6.31 mln ha as of Thursday, up 3% on year, according to data from the farm ministry. India’s mustard acreage is likely to rise 6.5% on year to 6.7 mln ha in 2018-19 (Jul-Jun).
A delay in import demand for Indian mustard meal (from China) has also played spoilsport. Earlier, prices were expected to rise but now they are seen weak as China is yet to place any order for Indian mustard meal despite having lifted the ban late in October.
February-end stocks are seen at 1.0-1.5 mln tn compared with 400,000 tn in the year-ago period. Mustard oil mills across the country crushed 450,000 tn of the oilseed in November, down 5.3% on year, an official with Mustard Oil Producers Association of India.
Mustard area is forecast at 60 lakh ha, down 50,000 ha from last month and unchanged from last year. However, currently rabi acreage for mustard is at par with last year acreage as on 14-Dec at 63.1 lakh hectares (lha) against 61.3 lha last year.
Mustard oil imports down about 70% on year to 12,242 tons in November compared to over 40,600 tons last year same month according to SEA latest press release. In Alwar spot market in Rajasthan the prices gained 32.2 Rupees to end at 4076.5 Rupees per 100 kg.
–Mustard Seed trading range for the day is 3881-3953.
–Mustard Seed prices dropped due to rise in arrivals, are seen declining sooner than expected.
–Higher acreage and a resultant larger crop are among the factors that will keep prices under pressure this season.
–NCDEX accredited warehouses mustard seed stocks dropped by 10 tonnes to 5046 tonnes.
–In Alwar spot market in Rajasthan the prices gained 32.2 Rupees to end at 4076.5 Rupees per 100 kg.