Mustardseed yesterday traded with the positive node and settled 1.96% up at 4015 on short covering on value buying after fall on better prospects of rabi sowing and still downtrend will continued in mustard seeds with stockists releasing existing stock on hopes of better crop prospect in the coming season. Though mustard production has been estimated to be lower this year as also the carryover stocks, the industry is of the view that the situation is under control. Worldover, the oilseeds counter is witnessing a bearish trend in view of hopes of better-than-expected soyabean harvest in the US. On the other hand, palm oil stocks in Malaysia, currently over two million tonnes, could rise to over three mt by the end of the year. But slow economic growth affecting demand which resulted in oilseeds counter dropping about 20 per cent in the last three weeks or so. The total arrivals of mustard seed remained unchanged at 65000 bags in major mandies. Last year the area under mustard seed was 6.8 million ha, but the crop last year was impacted due to unfavourable weather conditions. In the Sri Ganganagar spot market in Rajasthan the price edged up by 175 rupee to 4150 rupees per 20 kgs. In yesterday's trading session Mustardseed has touched the low of 3903 after opening at 3925, and finally settled at 4015. For today's session market is looking to take support at 3939.3, a break below could see a test of 3863.7 and where as resistance is now likely to be seen at 4054.3, a move above could see prices testing 4093.7.

Trading Ideas:

RM Seed  trading range for the day is 3864-4094.

Mustard seed gained on short covering on value buying after fall on better prospects of rabi sowing

The total arrivals of mustard seed remained unchanged at 65000 bags in major mandies.

NCDEX accredited warehouses mustard seed stocks dropped by 361 tonnes to 70267 tonnes.

In the Sri Ganganagar spot market in Rajasthan the price edged up by 175 rupee to 4150 rupees per 20 kgs.