Rmseed settled flat at 3294 on excellent sowing progress. Prices have seen under pressure in last few days as rising area under the commodity spurred hopes of a strong crop. Prices extended their recent slide. Lack of demand in edible oils and worries over the Mustard Meal demand have been the moderating factors for Mustard seed and oil. According to latest data from the Solvent Extractor's Association (SEA), the acreage under oilseeds stood at 88.25 lakh hectares, up 3.21%. The acreage under mustard seed stood at 71.35 lakh hectares, up 6%. Latest rabi sowing data from the government shows that acreage under oilseeds stood at 88.40 lakh hectares, up more than 3% compared to the last year. 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. Sowing of mustard seed surged to 7.11 million hectares until Jan 31 compared to 6.71 million hectares for the same period year ago, data from Farm Ministry showed. Cold wave conditions are prevailing in some parts of Rajasthan and these extreme cold weather for a prolonged period can trim rapeseed yields. In the Alwar spot market in Rajasthan the price dropped -25.75 rupee to 3378.25 rupees per 20kgs. Technically market is under short covering as market has witnessed drop in open interest by -0.61% to settled at 61750 while prices up 2 rupee, now Rmseed is getting support at 3286 and below same could see a test of 3279 level, And resistance is now likely to be seen at 3299, a move above could see prices testing 3305.

Trading Ideas:

Rmseed trading range for the day is 3278-3304.

Mustard seed prices settled flat as pressure seen on excellent sowing progress.

Prices have seen under pressure in last few days as rising area under the commodity spurred hopes of a strong crop.

Lack of demand in edible oils and worries over the Mustard Meal demand have been the moderating factors for Mustard seed

In the Alwar spot market in Rajasthan the price dropped -25.75 rupee to 3378.25 rupees per 20kgs.