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 0.39% at 5424 as pressure seen as farmers likely to increase acreage of mustard, encouraged by price hike.
The main oilseeds crop of Rabi season is favourable with seasonal conditions as well as market conditions before the commencement of sowing of mustard, which may increase the interest of farmers in its cultivation.
Also, the ban on adulteration of mustard oil is likely to further increase its consumption. In order to reduce dependence on edible oil imports, the government is insisting on increasing the production of oilseeds including mustard in mission mode.
The Minimum Support Price (MSP) of mustard has been increased by Rs. 225. The rains in mustard producing areas in Rajasthan during the last fortnight have caused sufficient moisture in the fields for sowing of mustard.
Adulteration of mustard oil has been banned by the Food Safety and Standards Authority of India (FSSAI) which has come into effect from October 1. Mustard is also cultivated in the country in provinces other than Rajasthan, Haryana, Madhya Pradesh, Uttar Pradesh, West Bengal and Bihar and will start sowing at several places in the second fortnight of this month.
–Mustard Seed trading range for the day is 5375-5499.
–Mustard Seed prices dropped as farmers likely to increase acreage of mustard, encouraged by price hike.
–The ban on adulteration of mustard oil may increase the demand for pure mustard oil in the country.
–The Minimum Support Price (MSP) of mustard has been increased by Rs. 225.
–In Alwar spot market in Rajasthan the prices dropped -75 Rupees to end at 5575 Rupees per 100 kg.