Rmseed settled up 0.84% at 3585 due to weak sowing progress of kharif oilseeds coupled with strong demand of mustard meal. As per the latest release Ministry of Agriculture, kharif oilseeds have been sown only on 1.44 million hectares compared with 11 million hectares last year.

This was mainly due to poor sowing of castorseed and soyabean. The prices will also be well supported by strong export demand of mustard meal in local mandies. In Madhya Pradesh estimated market supply was at 500 quintals, steady as against previous day's arrival. In Rajasthan sources reported arrivals at 75000 Bags, down by 5000 Bags from previous day's arrivals. 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. Technically market is under fresh buying as market has witnessed gain in open interest by 6.24% to settled at 103800 while prices up 30 rupee, now Rmseed is getting support at 3560 and below same could see a test of 3535 level, And resistance is now likely to be seen at 3611, a move above could see prices testing 3637.

Trading Ideas:

Rmseed trading range for the day is 3535-3637.

Mustard seed ended with gains due to weak sowing progress of kharif oilseeds coupled with strong demand of mustard meal.

In Rajasthan sources reported arrivals at 75000 Bags, down by 5000 Bags from previous day's arrivals.

NCDEX accredited warehouses mustard seed stocks dropped by 602 tonnes to 80866 tonnes.

In the Alwar spot market in Rajasthan the price gained 25.75 rupee to 3661.5 rupees per 20kgs.