Mustardseed yesterday traded with the negative node and settled -0.52% down at 3829 due to profit booking tracking weakness in other oilseed counters amid weak spot demand. It appears that short in short term some decline might be seen but long term largely depends up on Indian monsoon progress. If monsoon rain remain normal then we expect that kharif oilseeds area may increase which in turn may not allow RMseed prices to move up sharply.In Indian market, volatility will continue to remain there and prices are expected to move in both direction in short term. A major rise in price was seen due to the expectation of a decline in production this year as winter rains eluded the nation’s growing regions, hampering crop sowing. Concurrently, a shift to other remunerative crops further constrained rapeseed-mustard cultivation area expansion. Several factors added support to bears. First, oil meal exports fell by nearly 22 per cent and RM seed meal export fell by 70 per cent during April, compared with the same period last year due to lower crushing and sluggish demand. In India, mustard seed is basically a rabi crop. Its sowing starts in October and continues till end of December. The total arrivals of mustard seed increased by 2000 bags at 84000 bags in major mandies. In the Sri Ganganagar spot market in Rajasthan the price edged down by -39.8 rupee to 3786.85 rupees per 20 kgs. In yesterday's trading session Mustardseed has touched the low of 3782 after opening at 3830, and finally settled at 3829. For today's session market is looking to take support at 3797, a break below could see a test of 3765 and where as resistance is now likely to be seen at 3846, a move above could see prices testing 3863.

Trading Ideas:

RM Seed  trading range for the day is 3765-3863.

Mustard seed ended lower due to profit booking tracking weakness in other oilseed counters amid weak spot demand.

Oil meal exports fell by nearly 22 per cent and RM seed meal export fell by 70 per cent during April

NCDEX accredited warehouses mustard seed stocks dropped by 486 tonnes to 125472 tonnes.

In the Sri Ganganagar spot market in Rajasthan the price edged down by -39.8 rupee to 3786.85 rupees per 20 kgs.