Rmseed settled up 0.27% at 3340 tracking firmness in spot demand on lower level buying. Mustard acreage in 2012-13 stood at 63 lakh hectares and production stood at 66 LT, which is estimated to cross 78 LT in 2013-14 as acreage reported is at 67.5 million hectares during the current season. India's mustard oil production is expected to touch 34 lakh tonnes (LT) by 2020, driven by sustained rise in crop acreage. Output of mustard oil in the financial year 2012-13 stood at 23 LT, which is expected to reach 26 LT by the end of current fiscal. The total arrivals in Rajasthan remained around 32,000 - 42,000 bags. 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 India to raise imports of palm and sunflower oil. Indian government announced the MSP for RMSeed for the marketing year 2014-15. The government will procure mustard seed at Rs. 3050 per quintal which is Rs. 50 higher than the last year's prices. Sowing of mustard seed surged to 7.12 million hectares until Feb 7 compared to 6.72 million hectares for the same period year ago, data from Farm Ministry showed. Technically market is under short covering as market has witnessed drop in open interest by -3.45% to settled at 60090 while prices up 9 rupee, now Rmseed is getting support at 3319 and below same could see a test of 3298 level, And resistance is now likely to be seen at 3360, a move above could see prices testing 3380.

Trading Ideas:

Rmseed trading range for the day is 3300-3382.

Mustard seed ended with gains tracking firmness in spot demand on lower level buying.

Mustard acreage in 2012-13 stood at 63 lakh hectares and production stood at 66 LT, which is estimated to cross 78 LT in 2013-14.

The total arrivals in Rajasthan remained around 32,000 - 42,000 bags.

In the Alwar spot market in Rajasthan the price remains unchanged at0 rupee to 3429.75 rupees per 20kgs.