Rmseed settled up 0.57% at 3555 on late short covering after prices dropped as the demand for the meal did not pick up from exporters front. Mustard meal arrivals have declined in major producing states in India on weak demand. 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. Given that India is expected to get below-normal monsoon this year and the expectation of El Nino setting in, plantings of mustard which begins in November as part of rabi farming operations could be affected.

As such, a drawdown in production could limit the price fall in this commodity and could cause a reversal in the coming days. 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. Technically market is under fresh buying as market has witnessed gain in open interest by 3.36% to settled at 97380, now Rmseed is getting support at
3530 and below same could see a test of 3489 level, And resistance is now likely to be seen at 3592, a move above could see prices testing 3613.

Trading Ideas:

Rmseed trading range for the day is 3484-3608.

Mustard seed gained on late short covering after prices dropped as the demand for the meal did not pick up from exporters front.

Mustard meal arrivals have declined in major producing states in India on weak demand.

NCDEX accredited warehouses mustard seed stocks dropped by 20 tonnes to 81468 tonnes.

In the Alwar spot market in Rajasthan the price remains unchanged at0 rupee to 3635.75 rupees per 20kgs.