Rmseed settled up 0.44% at 3624 due to weak sowing progress of kharif oilseeds coupled with strong demand of mustard meal in local mandies. Mustard meal export demand, declining arrivals and lower output will cushion prices from a sharp fall. Prices are supportive after the report that Rajasthan government has lowered the VAT on rapeseed from 5 to 3 %.Mustard meal export increased 17.6% to 99,054 ton in June 2014 compared to 84,198 ton in June 2013. Sowing of mustard seed in 2013-14 stood at 7.13 million tons as against 6.73 million ton last year.

Agriculture ministry in its 3rd advance estimates pegged 2013-14 mustard output at 7.8 million tons, down 2.9% compared to 8.03 million tons in 2012-13. 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. In France, production may climb 19 percent from 2013 to 5.2 million tons as per the Agriculture Ministry. Romania’s harvest may rise to a 15-year high at 1 million tons. UK harvest may be between 2.4 million and 2.6 million tons.

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 remains unchanged at0 rupee to 3713 rupees per 20kgs. Technically market is under short covering as market has witnessed drop in open interest by -0.61% to settled at 98350 while prices up 16 rupee, now Rmseed is getting support at 3611 and below same could see a test of 3596 level, And resistance is now likely to be seen at 3639, a move above could see prices testing 3652.

Trading Ideas:

Rmseed trading range for the day is 3595-3651.

Mustard seed gained due to weak sowing progress of kharif oilseeds coupled with strong demand of mustard meal in local mandies.

Prices are supportive after the report that Rajasthan government has lowered the VAT on rapeseed from 5 to 3%.

NCDEX accredited warehouses mustard seed stocks dropped by 2000 tonnes to 74317 tonnes.

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