Technically Mustard Seed market is under fresh selling as market has witnessed gain in open interest by 1.71% to settled at 31490 while prices down 46 rupees.
Now NCDEX Mustard Seed is getting support at 4991 and below same could see a test of 4950 levels, and resistance is now likely to be seen at 5100, a move above could see prices testing 5168.
Mustard Seed yesterday settled down by 0.91% at 5031 on profit booking after prices gained as crop estimate is seen lower year on year because of heavy rainfall across regions of Haryana and Rajasthan.
According to farmers possible damage is expected around 20-25% roughly. Demand for Mustard oil remains healthy due to increase in household consumption, being influenced from the Rainy season. Procurement from the government had also favored price rise.
According to Haryana Agriculture Ministry, mustard was procured at minimum support price of Rs 4,425 per quintal. As per trade sources total procurement in the leading producing states of Rajasthan and Haryana have reached roughly 12 Lakh tonnes this year.All in all, procurement of Mustard ended with a satisfactory pace in the country despite Covid 19 outbreak.
Mustard procurement had commenced at 165 centres across Haryana in the month of April and to overcome the corona virus outbreak during the procurement season, the state government not only increased the number of purchase centers from last year’s 64, but also put limit against the number of farmers visiting these centers per day at 100 only.The Gujarat State Cooperative Marketing Federation Ltd (GUJCOMASOL) was also active in procuring mustard seeds this year.
–Mustard Seed trading range for the day is 4950-5168.
–Mustard Seed dropped on profit booking after prices gained as crop estimate is seen lower year on year because of heavy rainfall
–There are estimates of rise in sowing area this year due to better price remuneration by the farmers in 2019-2020.
–Total procurement in the leading producing states of Rajasthan and Haryana have reached roughly 12 Lakh tonnes this year.
–In Alwar spot market in Rajasthan the prices gained 37.3 Rupees to end at 5250 Rupees per 100 kg.