Mustard yesterday settled down -0.54% at 3480 tracking weakness in spot demand on sluggish demand. The downside in rapeseed is limited as arrival will come down significantly in the coming weeks. Market tried to move up but higher levels could not sustain due to weakness in the physical markets. However some improvement is seen in the volumes and open interest indicating that in near future good trading activities may be seen. 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 the market data, the total arrivals of mustard seed have reduced to 1.50-1.60 lakh bags in the last week , down almost 0.50-0.60 lakh bags from the earlier . This was on the account of restricted supplies by farmers at lower levels. The market data suggested that farmers are currently having the stocks of around 37 lakh tonnes , while almost 8 lakh tonnes are lying in the miller's warehouses. Traders also suggested that the total supply of mustard seed in the current year is expected at 67-68 lakh tonnes against the COOIT's estimate of 71 lakh tonnes . Therefore, reduction in mustard seed crop might incite the strong demand of mustard seed at lower level. Technically market is under fresh selling as market has witnessed gain in open interest by % to settled at while prices down -19 rupee, now Mustard is getting support at 3465 and below same could see a test of 3450 level, And resistance is now likely to be seen at 3494, a move above could see prices testing 3508.

Trading Ideas:

Rmseed trading range for the day is 3450-3508.

Mustard seed ended with losses tracking weakness in spot demand on sluggish demand.

The downside in rapeseed is limited as arrival will come down significantly in the coming weeks.

NCDEX accredited warehouses mustard seed stocks gained by 291 tonnes to 93157 tonnes.

In the Alwar spot market in Rajasthan the price dropped -25.75 rupee to 3481.25 rupees per 20kgs.