Mustard seed prices remained firm with steady demand from crushers and stockiest amid slow supplies. Rajasthan government has lowered the VAT on rapeseed from 5 to 3 %. The arrivals are in the range of 60,000—80,000 bags of 85 Kg each. Production of rapeseed will increase this season from France to Romania to the U.K., pushing prices lower at the same time supplies are rising for competing crops including soybeans. Rapeseed production in the 28-country EU is forecast at 22.4 million tons, 5.6 percent more than last year, that compares with an estimate of 21.54 million tons released July 7 by the European Commission. The U.S. Department of Agriculture’s forecast for the EU is 22 million tons, topping a record 21.6 million tons set in 2009. 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. Global rapeseed output will drop 2.7 percent to 69.1 million tons as per USDA data. In the Alwar spot market in Rajasthan the price gained 25.75 rupee to 3713 rupees per 20kgs. Technically market is under short covering as market has witnessed drop in open interest by -3.58% to settled at 98730 while prices up 3 rupee, now Rmseed is getting support at 3606 and below same could see a test of 3595 level, And resistance is now likely to be seen at 3633, a move above could see prices testing 3649.

Trading Ideas:

Rmseed trading range for the day is 3597-3651.

Mustard seed prices remained firm with steady demand from crushers and stockiest amid slow supplies.

Rajasthan government has lowered the VAT on rapeseed from 5 to 3 %.

NCDEX accredited warehouses mustard seed stocks dropped by 291 tonnes to 78008 tonnes.

In the Alwar spot market in Rajasthan the price gained 25.75 rupee to 3713 rupees per 20kgs.