Rmseed settled up 0.35% at 3426 on improved demand for mustard meal after investors bought back sold positions. The demand for meal from exporters is likely to slow down in coming days as enough supplies are expected to come in from EU which will push the prices further south. The arrivals remained in the range of 45,000 – 55,000 bags of 85Kg each. World exports of rapeseed are forecast to slide in the year through June 2015 on reduced crops in Canada, Ukraine and Australia as well as a bigger harvest in Europe. Global shipments may fall to 13.6 million to 13.9 million metric tons in 2014-15 from last year’s record 15.2 million tons but that would still be the second-highest export. Rapeseed meal exports jumped to 87,637 tons in July compared to 40,902 tons for the same period a year ago data by Solvent Extractors Association (SEA) of India showed. Agriculture ministry in its 3rd advance estimates has pegged 2013-14 mustard output at 7.8mn tn, down 2.9% compared to 8.03 mn tn in 2012-13. The USDA monthly crop report in August forecast 2014-15 output 3.816 bn bsh against 3.8 bn bsh last year while end stocks are forecast at 430 mn bsh against 415 mn bsh forecast in July. 2013-14 end stocks are forecast at 140 mn bsh. In the Alwar spot market in Rajasthan the price dropped -1.25 rupee to 3628.05 rupees per 20kgs. Technically market is under short covering as market has witnessed drop in open interest by -8.5% to settled at 73710 while prices up 12 rupee, now Rmseed is getting support at 3413 and below same could see a test of 3399 level, And resistance is now likely to be seen at 3440, a move above could see prices testing 3453.

Trading Ideas:

Rmseed trading range for the day is 3399-3453.

Mustard seed ended with small gains on improved demand for mustard meal after investors bought back sold positions.

World exports of rapeseed are forecast to slide in the year through June 2015 on reduced crops in Canada, Ukraine and Australia.

NCDEX accredited warehouses mustard seed stocks dropped by 4066 tonnes to 46725 tonnes.

In the Alwar spot market in Rajasthan the price dropped -1.25 rupee to 3628.05 rupees per 20kgs.