Rmseed settled up 0.21% at 3413 due to buying support, amid tight supplies in local markets. Sowing of mustard seed surged to 7.03 million hectares as on now compared to 6.62 million hectares for the same period year ago, data from Farm Ministry showed. Low temperature in Rajasthan and Madhya Pradesh, major mustard seed growing state has triggered fear of crop damage. However, there are no reports of crop damage by the government. As per market sources, below average temperature in major mustard seed producing states such as Punjab, Rajasthan and Uttar Pradesh will encourage the productivity of mustard seed crop in the current year . The oil recovery rate is also expected to reach 41-42 % against the average of 39-40%. This will also increase the supplies of mustard oil in local mandies. The prices also hammered by higher stocks in local mandies. The market sources suggested that total stocks of around 15-16 lakh tonnes of mustard seed have been reported in the major mandies . This can easily meet the total demand of around 5-7 lakh bags of mustard seed for the next two months. The area planted with rapeseed has risen to 6.97 million hectares this year from 6.5 million hectares a year ago, as farmers took advantage of monsoon-soaked land to grow the crop, which is more lucrative than the usual chickpea. In the Alwar spot market in Rajasthan the price dropped -12.9 rupee to 3558.5 rupees per 20kgs. Technically market is under short covering as market has witnessed drop in open interest by -4.08% to settled at 46350 while prices up 7 rupee, now Rmseed is getting support at 3404 and below same could see a test of 3396 level, And resistance is now likely to be seen at 3426, a move above could see prices testing 3440.

Trading Ideas:

Rmseed trading range for the day is 3396-3440.

Mustard seed ended with gains due to buying support, amid tight supplies in local markets.

Low temperature in Rajasthan and Madhya Pradesh, major mustard seed growing state has triggered fear of crop damage.

Technically market is under short covering as market has witnessed drop in open interest by -4.08% to settled at 46350

In the Alwar spot market in Rajasthan the price dropped -12.9 rupee to 3558.5 rupees per 20kgs.