Rmseed settled down -0.08% at 3621 on poor offtake and steady supplies in northern belts. 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. 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.

India mustard meal export increased 17.6% to 99,054 tons in June 2014 compared to 84,198 tons in June 2013 SEA data showed. 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. Global rapeseed output will drop 2.7 percent to 69.1 million tons as per USDA data. Flooding in recent weeks threatened crops in Canada, the biggest exporter and main grower of the canola variety.

Rising EU production may help mitigate a potential decline in world supplies. 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. In the Alwar spot market in Rajasthan the price remains unchanged at0 rupee to 3713 rupees per 20kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -3.11% to settled at 95180 while prices down -3 rupee, now Rmseed is getting support at 3606 and below same could see a test of 3591 level, And resistance is now likely to be seen at 3633, a move above could see prices testing 3645.

Trading Ideas:

Rmseed trading range for the day is 3591-3645.

Mustard seed dropped on poor offtake and steady supplies in northern belts.

India mustard meal export increased 17.6% to 99,054 tons in June 2014 compared to 84,198 tons in June 2013 SEA data showed.

NCDEX accredited warehouses mustard seed stocks dropped by 1576 tonnes to 72741 tonnes.

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