Mustardseed yesterday traded with the negative node and settled -2.53% down at 3926 tracking weakness in other oilseed counters amid weak spot market demand. There were rumors in the market that government may ban the futures trade in some of the essential commodities including RMseed. However, worried over the very high prices of oilseeds complex, the Exchange has taken various steps to reduce the excessive speculative activities. Production loss is nearly 16% in RMseed. This year RMseed production is estimated at 58.8 LT as compared to 70 LT last year. The total output of Rape-Mustard in the country including Toria Crop is estimated at 60.3 lakh tonnes for the current season, according to a latest update from the Solvent Extractor's Association Of India (SEA). The SEA opines that the crop size is reasonable and do not get panic to buy rapeseed at high price and run into losses. It would be more prudent and advisable to restrict your buying to the current operational need. The total arrivals of mustard seed decreased by 40,000 bags at 2.55 lakh bags in major mandies. In the Sri Ganganagar spot market in Rajasthan the price edged down by -16.25 rupee to 3900 rupees per 20 kgs. In yesterday's trading session Mustardseed has touched the low of 3908 after opening at 4014, and finally settled at 3926. For today's session market is looking to take support at 3882.7, a break below could see a test of 3839.3 and where as resistance is now likely to be seen at 3994.7, a move above could see prices testing 4063.3.

Trading Ideas:

RM Seed trading range for the day is 3839-4063.

Mustard seed ended lower tracking weakness in other oilseed counters amid weak spot market demand

There were rumors in the market that government may ban the futures trade in some of the essential commodities

NCDEX accredited warehouses mustard seed stocks gained by 899 tonnes to 67615 tonnes.

In the Alwar spot market in Rajasthan the price edged down by -16.25 rupee to 3900 rupees per 20 kgs.