Mustardseed yesterday traded with the negative node and settled -1.58% down at 4354 due to profit booking tracking weakness in other oilseed counters after prices gained due to receding stocks along with waning crop prospects for the coming season. As per COOIT, Rapeseed output is estimated to drop by 12.6% to 6.03 mln tons in the year to June 2012. Moreover, poor rainfall condition in major mustard seed producing states such as Rajasthan, Gujarat and Uttar Pradesh during the monsoon season might reduce the moisture from the soil and this might also reduce the overall productivity in the coming season. Concerns over soybean crop in US and deficit and delayed monsoon in India sparked the oilseeds prices. As per market sources, strong demand of oilmeal in the major mandies prompted the strong crushing demand of mustard seed. Sources estimated that the total availability of mustard seed in major mandies is reported at 30 lakh tonnes for the next 7 months (August -February) against the total demand of 34-35 lakh tonnes (estimating 4-5 lakh tonnes of monthly crushing demand). Therefore, scarcity in mustard seed supplies in the major mandies might incite strong gains in both physical and futures market. In the Sri Ganganagar spot market in Rajasthan the price edged down by -138.65 rupee to 4148.85 rupees per 20 kgs. In yesterday's trading session Mustardseed has touched the low of 4311 after opening at 4400, and finally settled at 4354. For today's session market is looking to take support at 4300.3, a break below could see a test of 4246.7 and where as resistance is now likely to be seen at 4418.3, a move above could see prices testing 4482.7.
Trading Ideas:
RM Seed trading range for the day is 4247-4483.
Mustardseed ended lower due to profit booking tracking weakness in other oilseed counters
Rapeseed output is estimated to drop by 12.6% to 6.03 mln tons in the year to June 2012
NCDEX accredited warehouses mustard seed stocks dropped by 691 tonnes to 130881 tonnes.
In the Sri Ganganagar spot market in Rajasthan the price edged down by -138.65 rupee to 4148.85 rupees per 20 kgs.
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