Mustard yesterday settled down -0.2% at 3521 as arrivals in physical markets are gradually improving weighing on prices. According to COOIT', the total output of mustard seed in the country is seen at 71.50 lakh tonnes, up 12.70% on the year. The mustard seed arrivals are slipping in major mandies now as growers respond to the poor prices. However, the overall undertone in the market is stable now. Satisfactory monsoon progress till date has discouraged the stockeist to buy aggressively. However it appears that it will soon start which will prevent any major fall in prices. As per latest crop estimates by Solvent Extractors Association of India (SEA), the overall mustard seed crop is estimated to increase by almost 18% from the last year to 71.12 lakh tonnes in the current year due to strong production estimates in Rajasthan and Haryana. As per the latest USDA report, China rapeseed production is projected at 13.5 million tons, up 0.9 million based on increased area and yield indicated in recently released official government statistics. After a steep decline last year, mustard oil production is likely to rise 27% in India this year due to record mustard seed production in the ongoing rabi season. In the Alwar spot market in Rajasthan the price remains unchanged at0 rupee to 3507 rupees per 20kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 2.03% to settled at 113040 while prices down -7 rupee, now Mustard is getting support at 3508 and below same could see a test of 3494 level, And resistance is now likely to be seen at 3540, a move above could see prices testing 3558.

Trading Ideas:

Rmseed trading range for the day is 3494-3558.

Mustard seed ended with losses as arrivals in physical markets are gradually improving weighing on prices

The mustard seed arrivals are slipping in major mandies now as growers respond to the poor prices.

NCDEX accredited warehouses mustard seed stocks gained by 866 tonnes to 88264 tonnes.

In the Alwar spot market in Rajasthan the price remains unchanged at0 rupee to 3507 rupees per 20kgs.