Rmseed settled up 0.78% at 3613 tracking firmness in spot demand due to decline in arrivals in most mandis. In Jaipur estimated market supply was at 70000 Bags, unchanged as compared to previous day’s arrival. Mustard Condition at Alwar market is offered weak at Rs. 3450-3500 per quintal, lower by 1.41 per cent from previous price level. Arrivals were reported at 7000 Bags, up by 1000 Bags from previous day’s arrivals. Mustard Non Condition at Sri Ganganagar market is quoted strong at Rs. 3190-3200 per quintal, up by 0.47 per cent as against previous day.

Sources reported arrivals at 1000 Bags, steady as against previous day’s arrival. 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 gained 25.75 rupee to 3687.25 rupees per 20kgs. Technically market is under short covering as market has witnessed drop in open interest by -1.24% to settled at 102510 while prices up 28 rupee, now Rmseed is getting support at 3581 and below same could see a test of 3549 level, And resistance is now likely to be seen at 3640, a move above could see prices testing 3667.

Trading Ideas:

Rmseed trading range for the day is 3549-3667.

Mustard seed ended with gains tracking firmness in spot demand due to decline in arrivals in most mandis.

At Sri Ganganagar market sources reported arrivals at 1000 Bags, steady as against previous day’s arrival.

NCDEX accredited warehouses mustard seed stocks dropped by 2567 tonnes to 78299 tonnes.

In the Alwar spot market in Rajasthan the price gained 25.75 rupee to 3687.25 rupees per 20kgs.