Mustard Seed on NCDEX settled up by 0.65% at 4672 on short covering tracking firmness in other oilseed counter after prices dropped on reports of good sowing progress. However, boost in winter demand and increase in MSP also supported prices. As per agriculture ministry data, all-India acreage of mustard in the ongoing rabi season was nearly 50.8 lh as on Nov 18 up 19.5% from a year ago. The sowing operations were not affected much, as sowing is nearing an end, and farmers had already bought the seeds. Till Nov 18, Rajasthan, planted 24.6 lakh ha, up 24% from a year ago similarly acreage increase in Uttar Pradesh, where mustard is sown in 9.82 lh, up 15.4% from a year ago. In MP, the oilseed was sown over 5.21 lh, up 23.2% sown a year ago. Govt increases mustard MSP by 350 rupees/100 kg to 3,700 rupees for FY16-17 which includes bonus of Rs.100 / quintals. As per the latest USDA monthly report, global rapeseed production for 2016/17 is forecast higher at 67.81 mt in Nov. compared to 67.6 mt in October and down 3.4% from 2015/16. Mustard seed sowing rose to 5.08 million hectare from 4.25 million hectare due to favorable weather. In Alwar spot market in Rajasthan the prices gained 12.9 rupees to end at 4758.9 rupees per 100 kg.Technically market is under short covering as market has witnessed drop in open interest by -4.87% to settled at 37320 while prices up 30 rupee, now Rmseed is getting support at 4654 and below same could see a test of 4635 level, And resistance is now likely to be seen at 4695, a move above could see prices testing 4717.

Trading Ideas:

Rmseed trading range for the day is 4635-4717.

Mustard seed prices ended with gains on short covering tracking firmness in other oilseed counter.

As per agriculture ministry data, all-India acreage of mustard in the ongoing rabi season was nearly 50.8 lh as on Nov 18 up 19.5% from a year ago.

NCDEX accredited warehouses mustard seed stocks dropped by 99 tonnes to 4759 tonnes.

In Alwar spot market in Rajasthan the prices gained 12.9 rupees to end at 4758.9 rupees per 100 kg.