Mustard Seed under long liquidation; Support seen at 3870

Technically Mustard Seed market is under long liquidation as market has witnessed drop in open interest by 3.1% to settled at 21290 while prices down 30 rupees.

Now NCDEX Mustard Seed is getting support at 3870 and below same could see a test of 3856 level, And resistance is now likely to be seen at 3908, a move above could see prices testing 3932.

Mustard Seed on NCDEX settled down by 0.77% at 3885 due to higher production estimates and subdued demand.Mustard output in the country in 2018-19 (Jul-Jun) is seen topping the government’s target of 8.5 mln tn, against last year’s production of 8.3 mln tn, a senior government official said.

“Weather is favourable and acreage is higher on year in most key growing regions. It has boosted the yields and increased oil content of the seed,” the official said.

Higher minimum support prices and China lifting its six-year ban on mustard meal imports from India prompted farmers to sow more of the commodity this year, he said.

According to data by the farm ministry, farmers in the country have planted mustard over 6.94 mln ha so far, up 3.4% on year.Higher acreage in Rajasthan, Uttar Pradesh, and Madhya Pradesh, the leading growers, have pulled up the overall area under the crop, the official said.

Production in Rajasthan is seen higher on year as winter showers were adequate, and day and night temperatures were within the desired range, the official said.

Mustard oil mills across the country crushed 400,000 tn of the oilseed in January, up 23.1% on year, according to data compiled by the Mustard Oil Producers Association of India.

Upbeat demand from mustard meal exporters ramped up the crushing operations, the official said. In Alwar spot market in Rajasthan the prices dropped 34 Rupees to end at 4179.5 Rupees per 100 kg.

Trading Ideas:
–Mustard Seed trading range for the day is 3856-3932.
–Mustard Seed prices ended losses due to higher production estimates and subdued demand.
–Mustard output in the country in 2018-19 (Jul-Jun) is seen topping the government’s target of 8.5 mln tn.
–According to data by the farm ministry, farmers in the country have planted mustard over 6.94 mln ha so far, up 3.4% on year.
–In Alwar spot market in Rajasthan the prices dropped 34 Rupees to end at 4179.5 Rupees per 100 kg.

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