Mustard yesterday settled up 0.42% at 3558 tracking firm spot demand on declining arrivals in spot markets. The Industry estimated 71.5 Lakh tons of RMseed production this year. Steady demand in physical markets and Reports of good Monsoon over Kerala coast also reflected prices. Arrivals in the physical markets have remained relatively less amidst improved demand which has supported the market sentiments to some extent. Open interest is improving gradually in July contract indicating that good momentum may be seen in near future. Expectation of normal monsoon does not allow prices to move up sharply. Next few days may remain volatile in the Indian markets. The DOC demand is sideways these days. Arrivals in physical markets have not increased as farmers are waiting for further rise in prices. The Industry estimated 71.5 Lakh tons of RMseed production this year. As per latest crop estimates by 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. 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 gained 6 rupee to 3513 rupees per 20kgs. Technically market is under short covering as market has witnessed drop in open interest by -1.37% to settled at 104570 while prices up 15 rupee, now Mustard is getting support at 3541 and below same could see a test of 3523 level, And resistance is now likely to be seen at 3571, a move above could see prices testing 3583.

Trading Ideas:

Rmseed trading range for the day is 3523-3583.

Mustard seed ended with gains tracking firm spot demand on declining arrivals in spot markets.

Steady demand in physical markets and Reports of good Monsoon over Kerala coast also reflected prices

NCDEX accredited warehouses mustard seed stocks gained by 855 tonnes to 80330 tonnes.