Mustard Seed on NCDEX settled down by -0.57% at 3844 tracking other oil complexes despite of lower arrivals in the market. New mustard seed arrivals across the country totalled at 505,000 bags against 550,000 on previous session. India's mustard output is estimated to rise to 6.9 mln tn in 2016-17 (Jul-Jun), from 5.8 mln tn a year ago, due to better yield and favourable weather, a survey done by the Central Organisation for Oil Industry and Trade and Mustard Oil Producers Association showed. Mustard output in Rajasthan, the largest producer, is seen at 3.1 mln tn this year, up from 2.6 mln tn last year, the survey showed. India's carryover stock of mustard seed at the end of February is seen at 250,000 tn, higher from 150,000 tn a year ago, due to lower demand for the crop from millers and meal exporters last year, industry officials said. Taking into account production and carryover stocks of the oilseed, total availability of mustard was estimated at 7.1 mln tn in 2016-17. 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 -25.75 Rupees to end at 3767.5 Rupees per 100 kg.Technically market is under long liquidation as market has witnessed drop in open interest by -1.06% to settled at 41140 while prices down -22 rupees, now Rmseed is getting support at 3818 and below same could see a test of 3792 level, And resistance is now likely to be seen at 3889, a move above could see prices testing 3934.

Trading Ideas:

Rmseed trading range for the day is 3792-3934.

Mustard seed prices dropped tracking other oil complexes despite of lower arrivals in the market.

New mustard seed arrivals across the country totalled at 505,000 bags against 550,000 on previous session.

India's mustard output is estimated to rise to 6.9 mln tn in 2016-17 (Jul-Jun), from 5.8 mln tn a year ago.

In Alwar spot market in Rajasthan the prices dropped -25.75 Rupees to end at 3767.5 Rupees per 100 kg.