Mustardseed yesterday traded with the positive node and settled 1.68% up at 3945 on an estimated drop in the production though upside was limited due to higher production concerns. Government of Rajasthan is planning to impose stock limit and 3rd Advance Estimates of Crop Production for 2011-12 released yesterday by Ministry of Agriculture which shows production estimates of rape/mustard seed of 6.96 million tonnes. As per COOIT, the country's rapeseed output is estimated to drop by 12.6 percent to 6.03 million tonnes in the year to June 2012. The overall rabi (November-March) oilseed crop for 2011-12 is estimated to fall to 8.79 million tonnes from 9.87 million tonnes last year, with a drop in sown area from 9.72 million hectares last year to 9.07 million ha this time. Further the export and domestic prices of Mustard DOC and soy DOC have seen significant increment due to good demand. However, worried over the very high prices of oilseeds complex, the Exchange has taken various steps to reduce the excessive speculative activities. In the Sri Ganganagar spot market in Rajasthan the price edged down by 0 rupee to 3900 rupees per 20 kgs. In yesterday's trading session Mustardseed has touched the low of 3860 after opening at 3888, and finally settled at 3945. For today's session market is looking to take support at 3883.7, a break below could see a test of 3822.3 and where as resistance is now likely to be seen at 3982.7, a move above could see prices testing 4020.3.

Trading Ideas:

RM Seed  trading range for the day is 3822-4020.

Mustard seed gains on an estimated drop in production though upside was limited due to higher production concerns

3rd Advance Estimates of Crop Production for 2011-12 shows production estimates of mustard seed of 6.96 mln tns

NCDEX accredited warehouses mustard seed stocks gained by 1087 tonnes to 94095 tonnes.

In the Alwar spot market in Rajasthan the price edged down by 0 rupee to 3900 rupees per 20 kgs.