Rmseed settled down -0.96% at 3395 as prices continued to be sluggish on demand outstripping supply. The spot market sources suggested that strong offtake by millers and exporters has witnessed some gains in physical prices. The spot price added Rs 15 per quintal to settle at Rs 3625 per quintal at Jaipur mandi. The latest data release by SEA of India suggested that the exports of mustard meal during the December 2013 reported strong gains of over 257% to reach 0.93 lakh tonnes against 0.26 lakh tonnes of the previous year. Total arrivals in Jaipur were at 45000 Bags, up by 5000 Bags from previous day's arrivals. In Alwar estimated market supply was at 5000 Bags, up by 1000 Bags as compared to previous day. India's rapeseed production is unlikely to rise in 2014 despite increased plantings as cold weather in the top producing region is seen denting yields, forcing the country to raise imports of palm and sunflower oil. After a poor harvest of soybeans, the world's biggest edible oil importer was relying on rapeseed output to arrest rising imports. Without any rise in rapeseed production, India will be forced to increase imports - which cost it a record $11.3 billion last fiscal year - from May onwards. Technically market is under fresh selling as market has witnessed gain in open interest by 13.74% to settled at 38150 while prices down -33 rupee, now Rmseed is getting support at 3382 and below same could see a test of 3368 level, And resistance is now likely to be seen at 3417, a move above could see prices testing 3438.

Trading Ideas:

Rmseed trading range for the day is 3368-3438.

Mustard seed ended with losses as prices continued to be sluggish on demand outstripping supply.

The spot market sources suggested that strong offtake by millers and exporters has witnessed some gains in physical prices

Technically market is under fresh selling as market has witnessed gain in open interest by 13.74% to settled at 38150

In the Alwar spot market in Rajasthan the price remains unchanged at0 rupee to 3558.5 rupees per 20kgs.