NCDEX Tips Trial

Selling is likely to continue in mustard seed in the near term on the heels of weak export demand of mustard meal during the October month along with strong mustard seed arrivals in major mandies. The NCDEX mustard seed futures plummeted by more than Rs 30 per quintal in the last trading.
As per latest data compiled by Solvent Extractors' Association of India, the total exports of oilmeals for the month of October 2012 were reported at 39,058 tonnes, down 56.50% from the last year in the same period.
Moreover, strong mustard seed arrivals in physical mandies also added some selling pressure in futures market. The total arrivals of mustard seed increased by 7000 bags to 80000 bags in major mandies in the last trading, while the spot prices of mustard seed were quoting at around Rs 4455-4460 per quintal at Jaipur mandi, Rs 4200 per quintal at Kota, Rs 4425 per quintal at Hapur and Rs 4350 per quintal at Bikaner mandi. The spot prices of mustard seed declined by almost Rs 30-40 per quintal in all major mandies.
Consequently, the future prices of Mustard seed NCDEX December Benchmark contract declined by Rs 32 per quintal to close at Rs 4235 per quintal in the last trading. The contract added almost 1000 positions in open interest indicating fresh short position by speculators at higher levels. Technically, resistances are likely at around Rs 4255-4260 per quintal while supports are likely at Rs 4200-4205 per quintal in the short term.