Mustard Seed on NCDEX settled up by 1.2% at 4876 tracking firmness in spot demand coupled with restricted arrivals. As per agriculture ministry data, all-India acreage of mustard in the ongoing rabi season was nearly 58.1 lh up 17.8% 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 28, Rajasthan, planted 26.3 lakh ha, up 1% from a year ago similarly acreage increase in Uttar Pradesh, where mustard is sown in 10.6 lh, up 17.1% from a year ago. In MP, the oilseed was sown over 6.13 lh, up 17% 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. In global market, prices for the rapeseed touched 16-month highs, helped by robust exports and crushing, with vegoil prices soaring world-wide. And global rapeseed supply is tighter this year, thanks to falling yields and smaller planted area. Kota market total arrivals are at 600 Bags, higher by 100 Bags as compared to previous day. In October 2016, rapeseed meal export rose to 23,720 tonnes, from 3,079 tonnes in the year-ago period. Unlike the year-ago period, the castor seed meal shipments were to the tune of 31,025 tonnes in October this year. In Alwar spot market in Rajasthan the prices gained 25.75 rupees to end at 4836.15 rupees per 100 kg. Technically market is under fresh buying as market has witnessed gain in open interest by 10.74% to settled at 36590 while prices up 58 rupee, now Rmseed is getting support at 4808 and below same could see a test of 4740 level, And resistance is now likely to be seen at 4928, a move above could see prices testing 4980.

Trading Ideas:

Rmseed trading range for the day is 4740-4980.

Mustard seed prices gained tracking firmness in spot demand coupled with restricted arrivals.

As per agriculture ministry data, all-India acreage of mustard in the ongoing rabi season was nearly 58.1 lh up 17.8% from a year ago.

NCDEX accredited warehouses mustard seed stocks dropped by 269 tonnes to 4109 tonnes.

In Alwar spot market in Rajasthan the prices gained 25.75 rupees to end at 4836.15 rupees per 100 kg.