Mustard seed prices ended with losses tracking weakness in spot prices on oversupply woes. Rainfall across the nation has increased availability of green grass thus demand for mustard cake and meal slowed down from cattle feed industry. As per official data, the overall sowing acreage of kharif oilseeds has been reported at 149.60 lakh hectares, up 6 % from last year. Moreover, weakness in mustard meal oilseeds also added selling in local mandies. As per the latest release from Solvent Extractors' Association of India, the export of oilmeals during June 2016 is reported at 0.43 lakh tons compared to 0.58 lakh tons of the last year in the same period. As per latest USDA report, global rapeseed production for 2016-17 is forecast at 66.5 mt, higher by 389,000 tons this month. Canada production is forecast at 16.4 mt, lower than 2015-16 at 17.2 mt. For Canada, production is forecast 900,000 tons higher. Driven by higher yield of mustard seed, India's oilseed production is seen higher by about 7 lakh tonnes (lt) for the year 2015-16 rabi season, according to the industry estimates. The Central Organisation for Oil Industry and Trade (COOIT) has pegged the overall rabi oilseed crop for 2015-16 at 77.41 lt - about 7.47 lt higher from the previous year's 69.94 lt. Bulk of the increase is attributed to the higher yields of mustard. Technically market is under long liquidation as market has witnessed drop in open interest by -7.75% to settled at 57860 while prices down -6 rupee, now Rmseed is getting support at 4607 and below same could see a test of 4583 level, And resistance is now likely to be seen at 4660, a move above could see prices testing 4689.

Trading Ideas:

Rmseed trading range for the day is 4583-4689.

Mustard seed prices ended with losses tracking weakness in spot prices on oversupply woes.

As per latest USDA report, global rapeseed production for 2016-17 is forecast at 66.5 mt, higher by 389,000 tons this month.

NCDEX accredited warehouses mustard seed stocks dropped by 50 tonnes to 40050 tonnes.

In Alwar spot market in Rajasthan the prices dropped -51.5 rupees to end at 4849 rupees per 100 kg.