Mustard seed settled flat as improved demand for mustard oil ahead of festivities limited the downside. Agriculture ministry in its second advance estimates pegged 2013-14 mustard output at 8.25 mn tn, up 2.76% compared to 8.03 mn tn in 2012-13 season. The arrivals have also picked up to 65,000 to 90,000 bags of 85 Kg each. 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. Major mustard producing states in the country are Rajasthan, Gujarat, Madhya Pradesh, Haryana and Maharashtra. Higher mustard seed production would lead to increase in mustard oil output, which is indeed good news since India depends on edible oil imports to meet its requirement as there is a huge gap between demand and supply. Government second advanced estimates showed total production of mustard seed in 2013-14 is seen at 8.25 million tons against 7.3 million tons in the previous year on the account of higher sowing acreage in major producing states along with strong yield rates due to better crop conditions. In the Alwar spot market in Rajasthan the price gained 25.75 rupee to 3481.25 rupees per 20kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -2.85% to settled at 58980 while prices down -2 rupee, now Rmseed is getting support at 3371 and below same could see a test of 3358 level, And resistance is now likely to be seen at 3405, a move above could see prices testing 3426.

Trading Ideas:

Rmseed trading range for the day is 3359-3427.

Mustard seed ended with gains tracking gains in the edible oil complex and improved demand for mustard oil ahead of festivities

The arrivals have also picked up to 65,000 to 90,000 bags of 85 Kg each.

Government second advanced estimates showed total production of mustard seed in 2013-14 is seen at 8.25 million tons

In the Alwar spot market in Rajasthan the price gained 25.75 rupee to 3481.25 rupees per 20kgs.