Rmseed settled up 0.18% at 3380 tracking firmness in spot demand despite weak fundamentals due to higher output prospects on conducive weather conditions in the growing areas of western India. Government second advanced estimates showed total production of mustard seed in 2013-14 is seen at 8.25 million tons against 7.3 million tons in the previous year on the account of higher sowing acreage in major producing states along with strong yield rates due to better crop conditions. Sowing of mustard seed surged to 7.12 million hectares until Feb 7 compared to 6.72 million hectares for the same period year ago, data from Farm Ministry showed. The arrivals have also picked up to 65,000 to 90,000 bags of 85 Kg each. As per SEA of India, Indian buyers imported 15.7 lakh tons of crude palm oil in the 2013-14 oil years (Nov-Oct) till Jan., which is 16.93 percent lower against corresponding period of last year. Lack of demand in edible oils and worries over the Mustard Meal demand have been the moderating factors for Mustard seed and oil. According to latest data from the Solvent Extractor's Association (SEA), the acreage under oilseeds stood at 88.25 lakh hectares, up 3.21%. Latest rabi sowing data from the government shows that acreage under oilseeds stood at 88.40 lakh hectares, up more than 3% compared to the last year. In the Alwar spot market in Rajasthan the price gained 19.3 rupee to 3455.5 rupees per 20kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 5.52% to settled at 60820 while prices up 6 rupee, now Rmseed is getting support at 3370 and below same could see a test of 3361 level, And resistance is now likely to be seen at 3389, a move above could see prices testing 3399.

Trading Ideas:

Rmseed trading range for the day is 3362-3400.

Mustard seed gains tracking firmness in spot demand despite weak fundamentals due to higher output prospects on conducive weather conditions.

Government second advanced estimates showed total production of mustard seed in 2013-14 is seen at 8.25 million tons.

The arrivals have also picked up to 65,000 to 90,000 bags of 85 Kg each.

In the Alwar spot market in Rajasthan the price gained 19.3 rupee to 3455.5 rupees per 20kgs.