Mustard Seed settled down by -1.9% at 4955 as weakness in soyabean prices and subdued demand in the spot markets weighed. However good festive season domestic demand amidst falling stocks is constantly undermining limiting the downside. The sources stated that arrivals of around 0.70-0.90 lakh bags mustard seed have been reported in all the major producing states. The rise in mustard oil demand by major consuming region of eastern India during the festive season is encouraging higher buying by crushing units. Indian Meteorological Department (IMD) reported that from the beginning of Oct till today Rajasthan has not received any rainfall which is likely to affect rabi sowing of rm seed. As per the latest SEA data, the shipment of rapeseed meal exports increased m-o-m to 60,211 tonnes in Sep compared to 49,788 tonnes in Aug. According to MOPA, the production of mustard for 2014-15 has been lowered to 49 lakh tonnes, which was earlier forecasted at 57.4 lt. According to latest USDA report, global rapeseed production forecast to decline to 66.2 mt in 2015/16 from 71.9 mt last year on lower crop estimates from Canada, the EU, Australia, and Ukraine. As per IGC, EU's 2016 rapeseed area 'unlikely' to rise and EU rapeseed sowings have already fallen four times in the past five seasons, shrinking by 5 lakh hectares from the 2010-11 high of 7.0m hectares. In the Alwar spot market in Rajasthan the price dropped -47.95 rupee to 5136.35 rupees per 100kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 1.39% to settled at 67820 while prices down -96 rupee, now Rmseed is getting support at 4878 and below same could see a test of 4801 level, And resistance is now likely to be seen at 5038, a move above could see prices testing 5121.

Trading Ideas:

Rmseed trading range for the day is 4801-5121.

Mustard seed prices dropped as weakness in soyabean prices and subdued demand in the spot markets weighed.

However good festive season domestic demand amidst falling stocks is constantly undermining limiting the downside.

NCDEX accredited warehouses mustard seed stocks gained by 460 tonnes to 42289 tonnes.

In the Alwar spot market in Rajasthan the price dropped -47.95 rupee to 5136.35 rupees per 100kgs.