Mustard yesterday settled up 1.31% at 3490 due to weak arrivals in local mandies along with strong demand of mustard oil in domestic market. As per the latest release from Ministry of Agriculture, the total sowing acreage of oilseeds reported at 60.69 lakh hectares against 11.82 lakh hectares in the same time last year. This is mainly due to strong sowing progress of soyabean and Groundnut in the major producing states. The strong surge in overall sowing acreage in kharif oilseeds prompted strong liquidation of mustard seed stocks in the local mandies. Some worries are emerging over the soybean sowing in Maharashtra though the Madhya Pradesh crop is looking in good shape. 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 the peak supplies season gets over. 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. In the Alwar spot market in Rajasthan the price gained 6 rupee to 3481 rupees per 20kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 11.93% to settled at 86060 while prices up 45 rupee, now Mustard is getting support at 3438 and below same could see a test of 3386 level, And resistance is now likely to be seen at 3519, a move above could see prices testing 3548.

Trading Ideas:

Rmseed trading range for the day is 3386-3548.

Mustard seed gains due to weak arrivals in local mandies along with strong demand of mustard oil in domestic market.

The total output of mustard seed in the country is seen at 71.50 lakh tonnes, up 12.70% on the year.

NCDEX accredited warehouses mustard seed stocks gained by 391 tonnes to 97110 tonnes.

In the Alwar spot market in Rajasthan the price dropped -6.45 rupee to 3474.8 rupees per 20kgs.