Short covering seen in NCDEX Mustard Seed

Technically Mustard Seed market is under short covering as market has witnessed drop in open interest by 4.45% to settled at 18470.

Now NCDEX Mustard Seed is getting support at 3914 and below same could see a test of 3891 level, And resistance is now likely to be seen at 3957, a move above could see prices testing 3977.

Mustard Seed on NCDEX settled up by 0.61% at 3938 on short covering after prices dropped due to higher production estimates and subdued demand. All India mustard acreage for 2018-19 is reported at 34.70 lakh hectares which is 6.34 per cent lower than 2017-18 acreage of 37.05 lakh hectares.

Despite higher MSP of mustard, acreage has fallen due to lower availability of water. However, acreage may increase in the coming days depending upon the water availability. Mustard production target for 2018-19 is 84.86 lakh metric tonnes.

According to the fourth advance estimate of government, India mustard production estimate for 2017-18 is 83.22 lakh metric tonnes which is 5.11 percent higher than the 2016-17 production estimate of 79.17 lakh metric tonnes.

Traders have adopted a cautious attitude amid fears of rains/hailstorm in coming days in northwest and central India in the coming days. Mustard seed acreage grew 3% to 6.88 million hectares until January 23, according to agriculture ministry data.

NAFED sold 7,566 tons mustard seed in Haryana, Rajasthan, Madhya Pradesh and West Bengal at Rs 3,611-3,801 per quintal as per quality. The cooperative agency is still holding 160,340 tons mustard seed.

Mustard Seed crushing by millers of the country fell 27% in January to 400,000 tons from 550,000 tons a month ago due to poor demand of rapeseed meal from exporters, data from Mustard Oil Producers Association (MOPA) showed.In Alwar spot market in Rajasthan the prices gained 20 Rupees to end at 4128 Rupees per 100 kg.

Trading Ideas:
–Mustard Seed trading range for the day is 3891-3977.
–Mustard Seed ended with gains on short covering after prices dropped due to higher production estimates and subdued demand.
–All India mustard acreage for 2018-19 is reported at 34.70 lakh hectares which is 6.34 per cent lower than 2017-18 acreage of 37.05 lakh hectares.
–NCDEX accredited warehouses mustard seed stocks dropped by 605 tonnes to 3149 tonnes.
–In Alwar spot market in Rajasthan the prices gained 20 Rupees to end at 4128 Rupees per 100 kg.

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