daily trading calls

Mustard Seed on NCDEX settled down by -0.25%

Posted on Nov 08, 2017 by kc_admin

Mustard Seed on NCDEX settled down by -0.25% at 3956 on late profit booking after prices seen supported on supply worries following weak sowing operations in major oilseeds growing area and hope of strong demand. Prices will be supported by supply worries as unfavourable weather in Rajasthan delayed sowing operations. High day temperature during October hit sowing of crop in Rajasthan. As on 31 Oct about 980,000 hectare have been sown compared to 1.57 million hectare last year. This year target is 2.6 million hectare. Last year area was 2.5 million hectare while five year average is 2.58 million hectare. The prices will also be up on expectation of winter demand coupled with higher meal exports during the first six months of new financial year and increasing demand for winter crushing. Sowing of mustard in Rajasthan started but slow compared to last year. As on 31 Oct about 980,000 hectare have been sown compared to 1.57 million hectare last year. This year target is 2.6 million hectare. Last year area was 2.5 million hectare while five year average is 2.58 million hectare. Higher meal exports during the first six months of new financial year and increasing demand for winter crushing also kept prices up.  As per SEA data, during Nov-Sep, import of mustard oil sharply down to 255,000 tons from 333,000 tons a year ago. There are improved mustard meal exports in first 6 month of FY 2017/18. In Alwar spot market in Rajasthan the prices dropped -25.75 Rupees to end at 3947.75 Rupees per 100 kg.Technically market is under fresh selling as market has witnessed gain in open interest by 3.85% to settled at 35570 while prices down -10 rupees, now Rmseed is getting support at 3940 and below same could see a test of 3925 level, And resistance is now likely to be seen at 3975, a move above could see prices testing 3995.

Trading Ideas:

#             Rmseed trading range for the day is 3925-3995.

#             Mustard Seed settled down on late profit booking after prices seen supported on supply worries following weak sowing operations.

#             Prices will be supported by supply worries as unfavourable weather in Rajasthan delayed sowing operations.

#             NCDEX accredited warehouses mustard seed stocks dropped by 3379 tonnes to 1374 tonnes.

#             In Alwar spot market in Rajasthan the prices dropped -25.75 Rupees to end at 3947.75 Rupees per 100 kg