Rmseed settled down -0.69% at 3333 as conducive climatic conditions and prospects of a record output this year dampened the sentiments. Sowing of mustard seed is reported at 7.13 mn ha as against 6.72 mn ha during the same period last year. Agriculture ministry in its fourth advance estimates pegged mustard output at 7.82 mn tn, up by 18.4% compared to 2011-12 season. The Cabinet Committee on Economic Affairs has increased the MSP of Rapeseed/Mustard seed to Rs. 3050 per qtl from Rs. 3000 last year. Mustard seed prices slipped further today, extending its weak run on excellent sowing progress. Prices have slipped 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. Spot prices of RM Seed in Jaipur are trading at Rs 3400, down Rs 10 per quintal on the day. In the Alwar spot market in Rajasthan the price gained 25.75 rupee to 3429.75 rupees per 20kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 2.23% to settled at 62220 while prices down -23 rupee, now Rmseed is getting support at 3322 and below same could see a test of 3311 level, And resistance is now likely to be seen at 3347, a move above could see prices testing 3361.

Trading Ideas:

Rmseed trading range for the day is 3310-3360.

Mustard seed dropped as increasing sowing acreage triggered robust prospects of better yield

The market sources suggest that the total production of mustard seed in the current year is estimated at 77.32 lakh tonnes against 73.04 lakh tonnes of the previous year

The total production of mustardseed crop of the state is estimated at 37.82 lakh tonnes, up 9.80% from the last year due to favouarble temperature

In the Alwar spot market in Rajasthan the price gained 25.75 rupee to 3429.75 rupees per 20kgs.