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 up by 0.69% at 5538 on some buying support after prices dropped as India is likely to grow a record 10 mln tn mustard crop in 2020-21 (Jul-Jun), mainly due to the likelihood of a sharp rise in acreage.
India’s mustard seeds production is likely to rise while import of edible oil may reduce on accountof the government’s decision to ban blending of mustard oil with any other cooking oil with effect from October 1. Now, an additional 5 lakh tonnes of mustard oil will be required to replace the other oils that were used for blending purpose.
To produce 5 lakh tonnes of mustard oil, we will require 12-15 lakh tonnes of extra mustard seeds. The country’s production of mustard seeds, which is grown in Rabi (winter season), stood at 91.16 lakh tonnes in 2019-20 crop year (July-June).
India’s overall vegetable oil imports could decline to around 134-135 lakh tonne in the 2019-20 oil year (November-October) from 149.1 lakh tonne in the previous year on lower demand because of Covid-19 pandemic. The government has more than enough mustard seed of good quality for the 2020-21 (Jul-Jun) rabi sowing, a senior government official said, claiming a stock of 26,700 tn.
Trading Ideas:
–Mustard Seed trading range for the day is 5469-5609.
–Mustard Seed gained on some buying support after prices dropped as India is likely to grow a record 10 mln tn mustard crop in 2020-21
–India’s mustard seeds production is likely to rise while import of edible oil may reduce on account of the government’s decision to ban blending of mustard oil.
–The government has more than enough mustard seed of good quality for the 2020-21, claiming a stock of 26,700 tn.
–In Alwar spot market in Rajasthan the prices gained 25 Rupees to end at 5650 Rupees per 100 kg.