Rmseed on NCDEX settled down -0.38% at 3904 tracking weakness in spot demand amid profit booking. Further crush disparity has narrowed which is supporting demand from processors. Demand for mustard meal is also reported to be good. With the expectation of good crop in 2016/17, the new season supplies will be at higher size in the country. In addition to that the carryover stocks from last year might be higher as country imported record mustard oil and exported multiyear low mustard meal. However, the prices will get some support from the increase in minimum support price (MSP) of Rapeseed & Mustard to Rs. 3,700 per quintal for 2016/17 from Rs. 3,350 per quintal last year. Further the mustard crop is still waiting for harvest the weather will be very crucial in next one month. The shipment of rapeseed-mustard oil also increased to 17,878 tonnes from 7,461 tonnes, but the import of soyabean oil fell to 166,573 tonnes from 441,200 tonnes in the period under review. “Importers continue to make larger import purchases of sunflower oil, taking advantage of the still large price discount versus soyabean oil,” SEA said. As on February 1, the stock of edible oils at various ports was estimated to be at 1.73 mt which is equal to 32 days requirements. India's monthly requirement is about 1.65 mt, SEA said. Technically market is under fresh selling as market has witnessed gain in open interest by 2.3% to settled at 44010 while prices down -15 rupees, now Rmseed is getting support at 3884 and below same could see a test of 3864 level, And resistance is now likely to be seen at 3929, a move above could see prices testing 3954.

Trading Ideas:

# Rmseed trading range for the day is 3864-3954.

# Mustard seed dropped tracking weakness in spot demand amid profit booking.

# With the expectation of good crop in 2016/17, the new season supplies will be at higher size in the country.

# In addition to that the carryover stocks from last year might be higher as country imported record mustard oil.

# In Alwar spot market in Rajasthan the prices dropped -51.5 Rupees to end at 3870.5 Rupees per 100 kg.