Rmseed settled up 0.25% at 3592 recovering late hours on short covering after prices dropped with improved rainfall activities in Central India keeping sentiments weak as of now. 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. 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 30% to report 10.70 million hectares as on 27th July 2014 due to poor sowing of groundnut and castorseed. On the domestic front, 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. 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.

In the Alwar spot market in Rajasthan the price gained 38.6 rupee to 3764.5 rupees per 20kgs. Technically market is under short covering as market has witnessed drop in open interest by -7.26% to settled at 73090 while prices up
9 rupee, now Rmseed is getting support at 3575 and below same could see a test of 3558 level, And resistance is now likely to be seen at 3604, a move above could see prices testing 3616.

Trading Ideas:

Rmseed trading range for the day is 3558-3616.

Rmseed recovered in late hours on short covering after prices dropped with improved rainfall activities in Central India keeping sentiments weak

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.

NCDEX accredited warehouses mustard seed stocks dropped by 281 tonnes to 66653 tonnes. In the Alwar spot market in Rajasthan the price gained 38.6 rupee to 3764.5 rupees per 20kgs.