Mustardseed yesterday traded with the positive node and settled 0.96%
up at 3892 traded higher with support from last week tracking the
entire edible oil complex. As per 3rd Advance Estimates of Crop
Production for 2011/12 released by Ministry of Agriculture which shows
production estimates of RM seed of 6.96 mln tons which is much higher
as compared to COOIT’s figure of 6.03 mln tons. As per COOIT, the
country's rapeseed output is estimated to drop by 12.6% to 6.03 mln
tons in the year to June 2012. It appears that short in short term some
decline might be seen but long term largely depend 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.
Downward movement is expected in the morning hours however by the end
of the day some recovery might be seen. It appears that short in short
term some decline might be seen but long term largely depend 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. 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 decreased by 2000 bags at 82000 bags in major
mandies. In the Sri Ganganagar spot market in Rajasthan the price edged
up by 57.6 rupee to 3864.2 rupees per 20 kgs. For today's session
market is looking to take support at 3878, a break below could see a
test of 3864 and where as resistance is now likely to be seen at 3917,
a move above could see prices testing 3942.

RMSEED

RM Seed trading range for the day is 3864-3942.

Mustard seed traded higher with support from last week tracking the entire edible oil complex.

As per 3rd Advance Estimates released by Ministry shows production estimates of RM seed of 6.96 mln tons.

Short term some decline might be seen but long term largely depend up on Indian monsoon progress.

In the Sri Ganganagar spot market in Rajasthan the price edged up by 57.6 rupee to 3864.2 rupees per 20 kgs.

BUY RMSEED JULY ON DIP @ 3860 SL 3830 TGT 3898-3930.NCDEX