Indian oil seed market witnessed selling pressure this week on slowing demand for by-products.
MUSTARD SEED
Mustard seed witnessed selling pressure on sluggish demand in benchmark Jaipur market of Rajasthan, dropping 1 percent or Rs 50 at Rs 5,100 per 100kg.
However prices gained 1 percent in August month so far.
Mustard seed arrivals were 70,000 bags on daily across country, which is same as last week.
According to a trader from Jaipur said, big negative sentiment for mustard seed is coming from slowing demand for mustard oil at higher prices.
In addition to it, availability of other vegetable oil at lower level than mustard is also pressuring prices of raw material.
Further to it, disparity in crushing is still hovering Rs 3,000 per tonne is also seen negative for prices, due to slowing demand for by-products.
Currently prices are supported by buying from big crushers and blenders, whereas overall demand from retail participants have slowed.
In making news, The Solvent Extractors Assoc. Of India (SEA) in its monthly report said the country has imported 65,741 tonnes of Canola Oil in month of July against 18,278 tonnes in June.
The news of high import is seen negative among traders, as more availability of imported oil at lower prices will result for slow down in crushing and demand for raw material.
Canola oil prices were quoted at Rs 625 per 10 kg (Ex-Kandla Port) whereas local mustard oil Kacchi Gani was traded at Rs 932 at Jaipur market.
In futures market, mustard seed prices for September contract on the National Commodity & Derivatives Exchange Ltd (NCDEX) was down 3 percent or Rs 153 at Rs 4,822/100kg , while forward month October contract was lower 3.35 percent or Rs 170 to close at Rs 4,909.
Mustard seed prices will continue to focus on demand for mustard oil amid lower prices of alternative oil will pressure.
Market will also focus on weather factor, as recent rainfall has boosted soil moisture giving way for early/timely sowing.
Source - Commoditiescontrol.com
Technical view
Support at 4780 and Resistance at 4930
Looks weak below 4780 it can touch 4700 –4645 and then to 4600.
Fresh buying only above 4930.
Trading Recommendation – Sell Rmseed below 4780 Stop loss 4850 Target 4700--4645
