Mustard seed yesterday traded with the negative node and settled -1.86% down at 3736 due to subdued millers demand at current levels along with weak arrivals in major mandies. Traders stated that weak demand of mustard meal exports prompted the poor crushing demand of mustard seed at major mandies. Moreover, poor crushing margins of more than Rs 20-25 per quintal also reduced the miller's offtake at physical markets. On the supply side, arrivals were also remained sluggish at major mandies due to poor production estimates of the current year. The total daily arrivals were reported in the range of 1.20-1.30 lakh bags at major mandies. Some of the traders are still believe that Indian mustard seed production is likely to be much lower at 52 lakh tonnes against 68 lakh tonnes that were reported by SEA of India. India's rapeseed output is estimated to drop 12.6 percent to 6.03 million tonnes in the year to June 2012. The total arrivals of mustard seed decreased by 4000 bags at 1.28 lakh bags in major mandies. In the Sri Ganganagar spot market in Rajasthan the price edged down by -10 rupee to 3717.5 rupees per 20 kgs. In yesterday's trading session Mustardseed has touched the low of 3722 after opening at 3821, and finally settled at 3736. For today's session market is looking to take support at 3693.7, a break below could see a test of 3651.3 and where as resistance is now likely to be seen at 3806.7, a move above could see prices testing 3877.3.

Trading Ideas:

RM Seed trading range for the day is 3651-3877.

Mustard seed ended weak due to subdued millers demand along with weak arrivals in major mandies.

Traders stated that weak demand of mustard meal exports prompted the poor crushing demand of mustard seed

NCDEX accredited warehouses mustard seed stocks gained by 1317 tonnes to 128327 tonnes.

In the Alwar spot market in Rajasthan the price edged down by -10 rupee to 3717.5 rupees per 20 kgs.