Rmseed settled up 0.74% at 3524 due to weak supplies in local mandies along with strong demand of mustard meal. As per the latest release from Solvent Extractors' Association of India, the export data for export of oilmeals for the month of May 2014 reported at 0.95 lakh tons compared to 0.88 lakh tons in March, 2013 i.e. up 7.92%. The market sources suggest that the total production of mustard seed is estimate at 67 lakh tonnes against the previous estimate of 71 lakh tonnes for the current year. The arrivals are in the range of 70,000—90,000 bags of 85 Kg each. According to data from the US Department of Agriculture, the global production of mustard seed in 2014-15 is expected to drop by 3.4 per cent to 68.64 million tonnes from 71 million tonnes a year ago. On the domestic front, data from the Solvent Extractors’ Association of India shows that the sowing area under mustard seed has increased to 71.38 lakh hectare for the 2013-14 crop year (October to September), up 5.8 per cent from the previous year. However, the third advance production estimate from the Department of Agriculture reveals that in 2013-14, mustard seed production would drop to 78.29 lakh tonnes, down by 2.5 per cent compared with the year earlier. In the Alwar spot market in Rajasthan the price dropped -12.85 rupee to 3571.4 rupees per 20kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 0.19% to settled at 120650 while prices up 26 rupee, now Rmseed is getting support at 3503 and below same could see a test of 3483 level, And resistance is now likely to be seen at 3535, a move above could see prices testing 3547.

Trading Ideas:

Rmseed trading range for the day is 3483-3547.

Mustard seed ended with gains due to weak supplies in local mandies along with strong demand of mustard meal.

The market sources suggest that possible decline in mustard seed production in the current year has reduced the cultivators selling at lower levels.

NCDEX accredited warehouses mustard seed stocks gained by 10 tonnes to 82726 tonnes.

In the Alwar spot market in Rajasthan the price dropped -12.85 rupee to 3571.4 rupees per 20kgs.