Rmseed settled up 0.74% at 3409 tracking firmness in spot demand and other oilseed counters though upside was limited due to fresh crop arrivals and higher production figures. The arrivals remained in the range of 65,000 to 90,000 bags of 85 Kg each. Sowing of rabi crops across the country has touched 656.67 lakh hectares (ha) as compared to 621.39 lakh ha at this time of the season last year. Government figures indicate higher acerage under RMseed and the production estimates as per 2nd Advanced estimates will be arounf 8.25 million MT compared to 8.03 million MT last year. The world production and carryover stocks of rapeseed are on the rise which will certainly pressurize the markets. 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. 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 fresh buying as market has witnessed gain in open interest by 5.33% to settled at 62040 while prices up 25 rupee, now Rmseed is getting support at 3386 and below same could see a test of 3363 level, And resistance is now likely to be seen at 3426, a move above could see prices testing 3443.

Trading Ideas:

Rmseed trading range for the day is 3363-3443.

Mustard seed gains tracking firmness in spot demand and other oilseed counters though upside was limited due to fresh crop arrivals

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

The world production and carryover stocks of rapeseed are on the rise which will certainly pressurize the markets.

In the Alwar spot market in Rajasthan the price remains unchanged at0 rupee to 3481.25 rupees per 20kgs.