Mustardseed yesterday traded with the positive node and settled 2.02% up at 4342 as demand of oil meal has increased which has given support to the prices. Steady trend in other oilseeds such as soyabean and groundnut also added strong gains in mustard seed market. As per COOIT, Rapeseed output is estimated to drop by 12.6% to 6.03 mln tons in the year to June 2012. Rains have not been enough in many areas of the country which is a cause of concern and further delay may spark the edible oil prices including RMseed. Concerns over soybean crop in US and deficit and delayed monsoon in India sparked the oilseeds prices. As per market sources, strong demand of oilmeal in the major mandies prompted the strong crushing demand of mustard seed. The total arrivals of mustard seed increased by 3000 bags at 71000 bags in major mandies. In the Sri Ganganagar spot market in Rajasthan the price edged up by 133.85 rupee to 4288.85 rupees per 20 kgs. In yesterday's trading session Mustardseed has touched the low of 4280 after opening at 4280, and finally settled at 4342. For today's session market is looking to take support at 4288.3, a break below could see a test of 4234.7 and where as resistance is now likely to be seen at 4387.3, a move above could see prices testing 4432.7.

Trading Ideas:

RM Seed trading range for the day is 4235-4433.

Mustard seed ended higher as demand of oil meal has increased which has given support to the prices.

Steady trend in other oilseeds such as soyabean and groundnut also added strong gains in mustard seed market

NCDEX accredited warehouses mustard seed stocks gained by 200 tonnes to 130295 tonnes.

In the Sri Ganganagar spot market in Rajasthan the price edged up by 133.85 rupee to 4288.85 rupees per 20 kgs.