Mustard yesterday settled down -2.66% at 3477 on rising soybean supplies in local spot markets, a drop in edible oil prices overseas and a strong rupee. Supplies are rising in the local spot market. In the next fortnight there would be a significant rise in supplies. Market sources suggested that steady sowing progress of major kharif oilseeds prompted strong selling in the mustard seed market. The latest data received from Ministry of Agriculture stated that the overall sowing acreage of Kharif oilseeds as on now was reported at 188 lakh hectares, up 6.21% from the last year in the same time. The spot prices of mustard seed declined by almost Rs 40-50 per quintal in all major mandies to trade in the range of Rs 3450-3600 per quintal. Market sources indicated that around 50% of the last year's crop is still available in the market. This prompted strong selling by stockiest at every rise in futures market. The mustard seed futures swelled by almost 10% in the last one week due to sharp rise in other oilseeds like soyabean and castor seed. In the Alwar spot market in Rajasthan the price dropped -52 rupee to 3559 rupees per 20kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 8.77% to settled at 47890 while prices down -95 rupee, now Mustard is getting support at 3453 and below same could see a test of 3429 level, And resistance is now likely to be seen at 3521, a move above could see prices testing 3565.

Trading Ideas:

Rmseed trading range for the day is 3430-3566.

Mustard seed dropped on rising soybean supplies in local spot markets, a drop in edible oil prices overseas and a strong rupee.

Supplies are rising in the local spot market. In the next fortnight there would be a significant rise in supplies.

NCDEX accredited warehouses mustard seed stocks dropped by 652 tonnes to 45229 tonnes.

In the Alwar spot market in Rajasthan the price dropped -51.5 rupee to 3558.5 rupees per 20kgs.