Rmseed settled down -0.55% at 3434 due to higher sowing progress so far in the current year along with weak export of demand of mustard meal. As per the latest release from Ministry of agriculture, the sowing acreage of mustard seed was 69.76 lakh hectares as on 03rd January as against 65.05 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). The futures prices were also hammered by weak export demand of mustard meal during November month. The latest data release by Solvent Extractors' Association (SEA) Of India, the total exports of mustard meal during November 2013 reported at 0.27 lakh tonnes, down 81% from the previous month. Cold wave conditions are prevailing in some parts of Rajasthan, the top rapeseed producing state in India, the weather department said. Extreme cold weather for a prolonged period can trim rapeseed yields. Given the rise in sowing area and favourable crop report, any rally in both mustard and mustard oil appears unlikely in the coming days. According to sources, given rise in sowing area, production of mustard seeds this year is expected to be around 75 lakh tonnes against 68 lakh tonnes last year. In the Alwar spot market in Rajasthan the price dropped -32.2 rupee to 3655.05 rupees per 20kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 11.58% to settled at 31130 while prices down -19 rupee, now Rmseed is getting support at 3411 and below same could see a test of 3387 level, And resistance is now likely to be seen at 3463, a move above could see prices testing 3491.

Trading Ideas:

Rmseed trading range for the day is 3387-3491.

Mustard seed dropped due to higher sowing progress so far in the current year along with weak export of demand of mustard meal

The sowing acreage of mustard seed was 69.76 lakh hectares as on 03rd January as against 65.05 lakh hectares a year ago

The total exports of mustard meal during November 2013 reported at 0.27 lakh tonnes, down 81% from the previous month.

In the Alwar spot market in Rajasthan the price dropped -32.2 rupee to 3655.05 rupees per 20kgs.