Mustardseed yesterday traded with the negative node and settled -0.79% down at 3780 tracking weakness in spot demand amid weakness in other oilseed counters. However demand is likely to pick up soon as festive season is approaching. In Rajasthan, which is the major RMseed growing states, fields are ready for sowing activities. The total arrivals of mustard seed remained unchanged at 60000 bags in major mandies. Special Margin of 5% (in cash) on the Long Side on all the running contracts and yet to be launched contracts in Rapeseed Mustard Seed have been withdrawn with effect from beginning of day Thursday, October 04, 2012. Downtrend also continued in mustard seeds with stockists releasing existing stock on hopes of better crop prospect in the coming season. Beside slack buying support, sluggish trend in mustard oil has also been attributed to bearish sentiment in soya oil and rise in buying support for super palmolein. Continuous rains are seen in MP and Rajasthan region which may result in to delay in soybean crushing during October which will directly lead to less domestic oil availability in the festive season of Diwali. In the Sri Ganganagar spot market in Rajasthan the price edged up by 55 rupee to 3975 rupees per 20 kgs. In yesterday's trading session Mustardseed has touched the low of 3702 after opening at 3770, and finally settled at 3780. For today's session market is looking to take support at 3713, a break below could see a test of 3646 and where as resistance is now likely to be seen at 3836, a move above could see prices testing
3892.

Trading Ideas:

RM Seed trading range for the day is 3646-3892.

Mustardseed ended lower tracking weakness in spot demand amid weakness in other oilseed counters.

Special Margin of 5% on Long Side have been withdrawn with effect from October 04, 2012.

NCDEX accredited warehouses mustard seed stocks dropped by 869 tonnes to 73781 tonnes.

In the Sri Ganganagar spot market in Rajasthan the price edged up by 55 rupee to 3975 rupees per 20 kgs.