Rmseed settled up 0.29% at 3417 due to bargain by millers and exporters in local mandies.  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. India's rapeseed production is unlikely to rise in 2014 despite increased plantings as cold weather in the top producing region is seen denting yields, forcing the country to raise imports of palm and sunflower oil. After a poor harvest of soybeans, the world's biggest edible oil importer was relying on rapeseed output to arrest rising imports. Without any rise in rapeseed production, India will be forced to increase imports - which cost it a record $11.3 billion last fiscal year - from May onwards. The area planted with rapeseed has risen to 6.97 million hectares this year from 6.5 million hectares a year ago, as farmers took advantage of monsoon-soaked land to grow the crop, which is more lucrative than the usual chickpea. Based on the higher acreage, industry officials had been expecting as much as a 7.7 percent rise in production. In the Alwar spot market in Rajasthan the price dropped -38.6 rupee to 3571.4 rupees per 20kgs. Now Rmseed is getting support at 3406 and below same could see a test of 3394 level, And resistance is now likely to be seen at 3426, a move above could see prices testing 3434.

Trading Ideas:

Rmseed trading range for the day is 3395-3435.

Mustard seed ended with gains due to bargain by millers and exporters in local mandies.

Low temperature in Rajasthan and Madhya Pradesh, major mustard seed growing state has triggered fear of crop damage.

NCDEX accredited warehouses mustard seed stocks gained by 2379 tonnes to 6636 tonnes.

In the Alwar spot market in Rajasthan the price dropped -38.6 rupee to 3571.4 rupees per 20kgs.