Rmseed settled up 0.67% at 3623 on strong offtake by oilmeal exporters' demand at higher levels. From the last few days, the prices were also well supported by possibility of poor rainfall in the current year. The strong demand in edible oils and Mustard Meal demand have been the supporting factors for Mustard seed and oil at lower levels. The arrivals are in the range of 50,000-60,000 bags of 85 Kg each. As per the latest crop survey by SEA of India, India's total mustard seed crop in 2013-14 is estimated at 74.40 lakh tonnes against 67 lakh tonnes of last year. This is mainly due to higher crop estimates in Rajasthan and Gujarat. On the sowing front, the area under major kharif oilseed has declined by almost 74% to report 3.80 million hectares as on 19 July 2014 due to poor sowing. Given that India is expected to get below-normal monsoon this year and the expectation of El Nino setting in, plantings of mustard which begins in November as part of rabi farming operations could be affected. 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. In the Alwar spot market in Rajasthan the price dropped -12.9 rupee to 3713 rupees per 20kgs. Technically market is under short covering as market has witnessed drop in open interest by -6.74% to settled at 81560 while prices up 24 rupee, now Rmseed is getting support at 3604 and below same could see a test of 3581 level, And resistance is now likely to be seen at 3638, a move above could see prices testing 3649.

Trading Ideas:

Rmseed trading range for the day is 3580-3648.

Mustard seed gained on strong offtake by oilmeal exporters' demand at higher levels.

From the last few days, the prices were also well supported by possibility of poor rainfall in the current year.

The arrivals are in the range of 50,000-60,000 bags of 85 Kg each.

In the Alwar spot market in Rajasthan the price dropped -12.9 rupee to 3713 rupees per 20kgs.