Rmseed settled down -0.41% at 3409 on profit booking after prices seen supported amid concerns over rapeseed production due to a cold wave in key producing areas. Sowing of mustard seed surged to 7.03 million hectares until Jan 10 compared to 6.62 million hectares for the same period year ago, data from Farm Ministry showed. Low temperature in Rajasthan and Madhya Pradesh, major mustard seed growing state has triggered fear of crop damage. However, there are no reports of crop damage by the government. However, the overall fundamentals of the market will encourage the traders to liquidate some of their stocks from higher levels. 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). According to a trade sources, given the rise in sowing area, production of mustard in the country this year is expected to be around 75 lakh tonnes against 64 lakh tonnes last year. Besides, adequate carryover stock (10-12 lakh bags) is also likely to keep both mustard and mustard oil prices on leash. In the Alwar spot market in Rajasthan the price gained 25.75 rupee to 3610 rupees per 20kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 2.67% to settled at 41890 while prices down -14 rupee, now Rmseed is getting support at 3399 and below same could see a test of 3390 level, And resistance is now likely to be seen at 3424, a move above could see prices testing 3440.

Trading Ideas:

Rmseed trading range for the day is 3389-3439.

Mustard seed dropped on profit booking after prices seen supported amid concerns over rapeseed production

Sowing of mustard seed surged to 7.03 million hectares until Jan 10 compared to 6.62 million hectares for the same period year ago.

NCDEX accredited warehouses mustard seed stocks gained by 571 tonnes to 4257 tonnes.

In the Alwar spot market in Rajasthan the price gained 25.75 rupee to 3610 rupees per 20kgs.