Mustard yesterday settled down -1.26% at 3369 on ample supplies due to a rise in production. Rapeseed stocks are higher due to last year's bumper production. This year, Rajasthan has received good rainfall. There are chances of bumper production again this year. The average weekly arrivals of mustard seed in local mandies were still higher than previous year due to strong production in the current year along with steady selling with the anticipation of weak demand in the coming days. The average daily arrivals of mustard seed in local mandies were reported at around 1.80-1.90 lakh bags against 0.80-1 lakh bags seen in last year in the same time. A reported moderation in rape mustard meal output could be a dominant factor for the sentiments. Rape Mustard oil prices in Sri Ganganagar have slipped to their two and half-month low amid a massive correction in entire edible oils pack. 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. Overall demand in edible oils is expected to rise in coming days as festive season approaches. The total arrivals of rapeseed, in Rajasthan were placed at 25,000-35,000 bags of 85 kg each. Technically market is under long liquidation as market has witnessed drop in open interest by -3.1% to settled at 76030 while prices down -43 rupee, now Mustard is getting support at 3338 and below same could see a test of 3306 level, And resistance is now likely to be seen at 3408, a move above could see prices testing 3446.

Trading Ideas:

Rmseed trading range for the day is 3310-3450.

Mustard seed ended with losses on ample supplies due to a rise in production.

Rapeseed stocks are higher due to last year's bumper production and this year, Rajasthan has received good rainfall.

NCDEX accredited warehouses mustard seed stocks dropped by 280 tonnes to 59621 tonnes.