Mustard Seed on NCDEX settled up by 1.24% at 4739 on continued short covering on demand hopes. The demand from oil millers and crushing units is expected to pick up at the prevailing levels due to recovery in the crush margin. However, steady demand and widespread rains in the monsoon increases the chances of good oilseed crop. Acc. to latest USDA report, rapeseed crop is raised to 67.16 mt compared to 66.54 in July with larger production estimates for Canada and Australia that more than offset reductions in the European. Canada rapeseed exports are up 600,000 tons to 9.4 million, on a larger production forecast and strong global demand. Driven by higher yield of mustard seed, India's oilseed production is seen higher by about 7 lakh tonnes (lt) for the year 2015-16 rabi season, according to the industry estimates. The Central Organisation for Oil Industry and Trade (COOIT) has pegged the overall rabi oilseed crop for 2015-16 at 77.41 lt - about 7.47 lt higher from the previous year's 69.94 lt. Bulk of the increase is attributed to the higher yields of mustard. As per official data, the overall sowing acreage of kharif oilseeds has been reported at 149.60 lakh hectares, up 6 % from last year. Moreover, weakness in mustard meal oilseeds also added selling in local mandies. In Alwar spot market in Rajasthan the prices gained 51.5 rupees to end at 4900.5 rupees per 100 kg. Technically market is under fresh buying as market has witnessed gain in open interest by 12.57% to settled at 46830 while prices up 58 rupee, now Rmseed is getting support at 4678 and below same could see a test of 4616 level, And resistance is now likely to be seen at 4787, a move above could see prices testing 4834.

Trading Ideas:

Rmseed trading range for the day is 4616-4834.

Mustard seed prices ended with gains on continued short covering on demand hopes.

However, steady demand and widespread rains in the monsoon increases the chances of good oilseed crop.

NCDEX accredited warehouses mustard seed stocks dropped by 1268 tonnes to 34466 tonnes.

In Alwar spot market in Rajasthan the prices gained 51.5 rupees to end at 4900.5 rupees per 100 kg.