AHMEDABAD (Commodity Online): Mustard Seed rise on account of restricted supply in the market. Mustard oil prices up by Rs 50 per 100 kilogram in Delhi on Tuesday on limited supply in the market.
Fresh demand from local traders in the wake of reports of higher prices in producing centres also aided the firm trend.
RM Seed May futures Contract opened at Rs.499.10, made a high of 504.50 and a low at 497.50 during the trading session. The volume recorded for the day is 84440 and the Open Interest for the day is 115370.
“Technically, RM Seed is expected to move down in long run on fresh arrival, but it can go up on short covering in short run. The 14 days RSI is at 51.42,” said Sudarshan Goel, Commodity Analyst with Commodity Online.
Currently, 300,000-350,000 bags (1 bag = 85 kg) of mustard seed arrived daily across the country. Arrivals in Rajasthan, the largest mustard producing state in India, were at 200,000-250,000 bags.
“Fundamentally, “fresh arrival of Mustard Seed may lead to fall in prices, however arrival is thin but Once it (arrivals) starts increasing, prices will come under pressure. So one can make short position for long term,” said Goel.
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