Mustard Seed on NCDEX settled down by -1.77% at 3835 due to profit booking and on expectation of higher supply. Prices of mustard will remain down on oversupply woes as India's agriculture department in second advance estimated pegged mustard seed crop at 7.912 million tons as compared to 6.797 million tons a year ago. Despite negative crush margins buying interest from processors is expected to be good mainly due to low stocks in pipeline. India is expected to produce around 6.5-7 million tonnes (mt) of rape mustard seeds in 2016-17 as compared to 5.8 mt produced in 2015-16 due to higher acreage and improving productivity. As per USDA's estimates, India is expected to export 0.35 mt of rapeseed meal in October to September 2016-17 compared to 0.29 mt in the same period the previous year. The USDA forecasts the global production of rapeseed for 2016-17 to be down by over 3 per cent at 67.9 mt due to reduced production from the EU and Canada resulting in 26 per cent decrease in stocks by year-end. China's rapeseed market is undergoing a shift towards increasing meal imports compared to the import of rapeseed. So, rapeseed demand has decreased due to higher domestic prices, uncertainty over possible import restrictions and the ongoing auction of domestic stocks, while lower production of rapeseed, together with growing demand from the sector, has accelerated the demand for meal. In Alwar spot market in Rajasthan the prices dropped -103 Rupees to end at 3767.5 Rupees per 100 kg. Technically market is under fresh selling as market has witnessed gain in open interest by 1.09% to settled at 44490, now Rmseed is getting support at 3809 and below same could see a test of 3784 level, And resistance is now likely to be seen at 3877, a move above could see prices testing 3920.

Trading Ideas:

Rmseed trading range for the day is 3784-3920.

Mustard seed prices dropped due to profit booking and on expectation of higher supply.

In second advance estimated pegged mustard seed crop at 7.912 million tons as compared to 6.797 million tons a year ago.

Despite negative crush margins buying interest from processors is expected to be good mainly due to low stocks in pipeline.

In Alwar spot market in Rajasthan the prices dropped -103 Rupees to end at 3767.5 Rupees per 100 kg.