Rmseed settled down -0.36% at 3608 tracking weakness in spot demand amid profit booking after prices seen supported on weak mustard oil supply. However downside seen limited as buying normally surges during monsoon due to increase in consumption of oil and rise in demand of mustard meal for cattle feed in domestic markets. Weak kharif oilseed sowing progress so far in the current year coupled with expected decline in arrivals (approach of lean season) too are likely to support the prices. Mustard meal export increased 17.6% to 99,054 tons in June 2014 compared to 84,198 tons in June 2013. 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. In the Alwar spot market in Rajasthan the price remains unchanged at0 rupee to 3713 rupees per 20kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 0.91% to settled at 98980 while prices down -13 rupee, now Rmseed is getting support at 3598 and below same could see a test of 3586 level, And resistance is now likely to be seen at 3626, a move above could see prices testing 3642.

Trading Ideas:

Rmseed trading range for the day is 3585-3641.

Mustard seed dropped tracking weakness in spot demand amid profit booking after prices seen supported on weak mustard oil supply.

Mustard meal export increased 17.6% to 99,054 tons in June 2014 compared to 84,198 tons in June 2013.

NCDEX accredited warehouses mustard seed stocks dropped by 1691 tonnes to 76317 tonnes.

In the Alwar spot market in Rajasthan the price remains unchanged at0 rupee to 3713 rupees per 20kgs.