Mustard seed settled flat on late profit booking after prices gained on concerns that a sharp drop in temperature in the northern part of the country could damage rapeseed crop. Rapeseed acreage has risen, but the weather has been becoming unfavourable for the crop. The sharp drop in temperature can reduce yields. Temperature has fallen below normal level in top rapeseed producing Rajasthan state. Some parts of the state even reported ground frost. Thundershower would occur at isolated places over Punjab, Haryana and north Rajasthan on Tuesday and increase thereafter, the department said. Thundershower can damage the rapeseed crop. Indian farmers had cultivated rapeseed on 6.75 million hectares compared with 6.36 million hectares a year earlier. As per the latest release from Ministry of agriculture, the sowing acreage of mustard seed was 68.86 lakh hectares as on 26 December 2013 as against 64.48 lakh hectares a year ago. This was mainly on account of higher area under the crop in major producing states such as Rajasthan and Madhya Pradesh (MP). Traders mentioned that below-average temperature in some parts of Rajasthan, MP and Uttar Pradesh will encourage the sowing of mustard seed over other short duration crops like coriander and jeera. Technically market is under fresh selling as market has witnessed gain in open interest by 14.38% to settled at 17100 while prices down -2 rupee, now Rmseed is getting support at 3419 and below same could see a test of 3408 level, And resistance is now likely to be seen at 3448, a move above could see prices testing 3466.

RMSEED

Rmseed trading range for the day is 3408-3466.

Mustard seed settled flat on late profit booking after prices gained on concerns that a sharp drop in temperature in the northern part

Rapeseed acreage has risen, but the weather has been becoming unfavourable for the crop.

Temperature has fallen below normal level in top rapeseed producing Rajasthan state.

In the Alwar spot market in Rajasthan the price gained 45.1 rupee to 3751.65 rupees per 20kgs.

SELL RMSEED APR @ 3470 SL 3510 TGT 3440-3390.NCDEX