Commodity Trading Tips for Mustardseed by KediaCommodity

Mustardseed yesterday traded with the negative node and settled -2.34% down at 4083 weighed by expectations of higher arrivals in the coming days. Indian farmers have cultivated rapeseed on 5.22 million hectares as on Nov. 23, compared with 5.07 million hectares during the same time last year. Rapeseed output is likely to grow nearly 25 percent to 6.5 million tonnes, industry officials said. The sowing of rabi oilseeds, particularly mustard has surpassed last year, as winter has arrived in most of north and central India which would increase the export of edible oil next year. The production of mustard seed is critical to determine the extent of edible oil import needed every year as it is the biggest oilseed crop during the rabi season. Mustard had been sown on 5.71 million hectares till Thursday as per the latest report.

 The area sown is 5.64 million hectares more than the sowing during the corresponding period last year. The government has fixed a target of 8.19 million tonnes in 2012-13. Rajasthan mustard sowing was 2.58 million hectares till Thursday, up 2.8 per cent from last year, according to the data. Rajasthan is the biggest producer of mustard seed in the country. In 2010-11 the production was 81.79 million tons. 

According to the fourth advanced estimates, the production in 2011-12 would be 67.76 mt and the estimated target for 2012-13 is 81.93 mt. In the Sri Ganganagar spot market in Rajasthan the price edged down by -37.5 rupee to 4225 rupees per 20 kgs. In yesterday's trading session Mustardseed has touched the low of 4071 after opening at 4175, and finally settled at 4083. For today's session market is looking to take support at 4041.7, a break below could see a test of 4000.3 and where as resistance is now likely to be seen at 4153.7, a move above could see prices testing 4224.3.
Trading Ideas:

RM Seed  trading range for the day is 4000-4224.
Mustardseed ended lower weighed by expectations of higher arrivals in the coming days.
Indian farmers have cultivated rapeseed on 5.22 million hectares, compared with 5.07 million hectares during same time last year.

NCDEX accredited warehouses mustard seed stocks dropped by 1195 tonnes to 32285 tonnes.
In the Sri Ganganagar spot market in Rajasthan the price edged down by -37.5 rupee to 4225 rupees per 20 kgs.