Mustard yesterday settled up 0.03% at 3522 due to improved demand in the spot market against restricted arrivals in domestic markets. Further, a firming trend in overseas markets also supported the upside. However, expectations of higher production in the major producing area capped the gains. Satisfactory monsoon progress till date has discouraged the stockeist to buy aggressively. According to COOIT', the total output of mustard seed in the country is seen at 71.50 lakh tonnes, up 12.70% on the year. The mustard seed arrivals are slipping in major mandies now as growers respond to the poor prices. As per latest crop estimates by Solvent Extractors Association of India (SEA), the overall mustard seed crop is estimated to increase by almost 18% from the last year to 71.12 lakh tonnes in the current year due to strong production estimates in Rajasthan and Haryana. As per the latest USDA report, China rapeseed production is projected at 13.5 million tons, up 0.9 million based on increased area and yield indicated in recently released official government statistics. After a steep decline last year, mustard oil production is likely to rise 27% in India this year due to record mustard seed production in the ongoing rabi season. In the Alwar spot market in Rajasthan the price gained 6 rupee to 3513 rupees per 20kgs. Technically market is under short covering as market has witnessed drop in open interest by -1.22% to settled at 111490 while prices up 1 rupee, now Mustard is getting support at 3513 and below same could see a test of 3504 level, And resistance is now likely to be seen at 3535, a move above could see prices testing 3548.
Rmseed trading range for the day is 3505-3549.
Mustard seed ended with gains due to improved demand in the spot market against restricted arrivals in domestic markets.
Satisfactory monsoon progress till date has discouraged the stockeist to buy aggressively.
NCDEX accredited warehouses mustard seed stocks gained by 1382 tonnes to 89646 tonnes.
In the Alwar spot market in Rajasthan the price gained 6.45 rupee to 3513.45 rupees per 20kgs.