Rmseed settled down -0.63% at 3635 due to strong stockiest liquidation in local mandies coupled with improvement in monsoon conditions in Northern India. The arrivals are in the range of 60,000—80,000 bags of 85 Kg each. India's Rapeseed meal exports rose to 3.20 lakh tonnes in April-June this year from 2.26 lakh tonnes in the year-ago period on strong demand from South Korea and Thailand. The acreage under mustard seed stood at 70.35 lakh hectares, up 6% in the last rabi season.  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. 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. 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 gained 12.9 rupee to 3725.9 rupees per 20kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -10.25% to settled at 88240 while prices down -23 rupee, now Rmseed is getting support at 3619 and below same could see a test of 3605 level, And resistance is now likely to be seen at 3652, a move above could see prices testing 3671.

Trading Ideas:

Rmseed trading range for the day is 3606-3672.

Mustard seed dropped due to strong stockiest liquidation in local mandies coupled with improvement in monsoon conditions in Northern India.

The acreage under mustard seed stood at 70.35 lakh hectares, up 6% in the last rabi season.

NCDEX accredited warehouses mustard seed stocks dropped by 1882 tonnes to 70685 tonnes.

In the Alwar spot market in Rajasthan the price gained 12.9 rupee to 3725.9 rupees per 20kgs.