Technically Mustard Seed market is under long liquidation as market has witnessed drop in open interest by 3.78% to settled at 30830 while prices down 25 rupees.
Now NCDEX Mustard Seed is getting support at 5293 and below same could see a test of 5265 levels, and resistance is now likely to be seen at 5343, a move above could see prices testing 5365.
Mustard Seed yesterday settled down by 0.74% at 5377 on profit booking after prices gained due to good demand of mustard oil in the physical market amid steady crushing activities seemed to have supported uptrend in prices.
Declining mandi arrivals too have supported the market sentiments. The Solvent Extractors’ Association of India has requested the Centre to bring mustard under the Bhavantar Bhugtan Yojana.
Under the scheme, the state pays farmers the difference between a crop’s modal price and minimum support price, if the modal price falls below the MSP. The government credits the amount directly into the accounts of registered farmers.
SEA believes that the move will not only provide minimum support price to mustard farmers but also solve the storage problem which the government faces for storing the procured commodity. This will also ensure proper availability in the spot markets and oil millers.
As per Fourth Advance Estimates for 2019-20 for Foodgrains production released on August 19, 2020 by Ministry of Agriculture, Mustard production has been estimated at 91.16 lakh tonnes which is lower by around 1.51% compared to 92.57 lakh tonnes produced last year. India’s Rapeseed meal export rose by 21% to 1.48 lakh tonnes on M-o-M basis during July.
–Mustard Seed trading range for the day is 5327-5453.
–Mustard Seed dropped on profit booking after prices gained due to good demand of mustard oil amid steady crushing activities
–Declining mandi arrivals too have supported the market sentiments.
–Mustard production has been estimated at 91.16 lakh tonnes which is lower by around 1.51% compared to 92.57 lakh tonnes produced last year.
–In Alwar spot market in Rajasthan the prices gained 52.1 Rupees to end at 5536 Rupees per 100 kg.