Rmseed settled down -0.27% at 3310 due to favourable crop conditions in the major producing states along with higher stocks in local mandies. With rise in arrivals and slack demand from the crushers, plant deliveries of mustard declined. Given the rise in sowing area and favourable crop report, future of both mustard and mustard oil appears bearish in the coming days. However, recent rains and biting cold in mustard-growing areas threaten to damage the crop prospects to some extent. The total arrival of bags remained 32,000-41,000 bags of 85 Kg each in Rajasthan. 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. India's palm oil imports rose to 863,205 tonnes in December from 774,207 tonnes in the previous month. Cold wave conditions are prevailing in some parts of Rajasthan and these extreme cold weather for a prolonged period can trim rapeseed yields. Dense to moderate fog would occur at a few places over north Rajasthan during next 48 hours. Moderate fog would occur at a few places over north Madhya Pradesh. Sowing of mustard seed surged to 7.03 million hectares until Jan 10 compared to 6.62 million hectares for the same period year ago, data from Farm Ministry showed. In the Alwar spot market in Rajasthan the price dropped -2.6 rupee to 3429.75 rupees per 20kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 2.56% to settled at 58170 while prices down -9 rupee, now Rmseed is getting support at 3298 and below same could see a test of 3285 level, And resistance is now likely to be seen at 3325, a move above could see prices testing 3339.

Trading Ideas:

Rmseed trading range for the day is 3283-3337.

Mustard seed dropped due to favourable crop conditions in the major producing states along with higher stocks in local mandies

With rise in arrivals and slack demand from the crushers, plant deliveries of mustard declined.

NCDEX accredited warehouses mustard seed stocks dropped by 190 tonnes to 6294 tonnes.

In the Alwar spot market in Rajasthan the price dropped -2.6 rupee to 3429.75 rupees per 20kgs.