Mustardseed sett;ed flat on drop in supplies due to festive season and higher demand for oilmeal products in overseas markets. The October-November and December are the months when maximum demand is seen and prices usually touches their peaks. Further sowing process also starts during October. In Rajasthan, which is the major RMseed growing states, sowing has started. Sown area is likely to increase this year. As per latest release from Ministry of Agriculture, the total sowing acreage of oilseeds as on 1st November 2012 was reported 21.81 lakh hectares against 20.15 lakh hectares that was reported last year in the same period. This is mainly due to hike in minimum support price by government for mustard seed along with remunerative prices of mustard seed throughout the current marketing season. Moreover, waning export demand of mustardmeal also propelled some selling in futures market. As per latest data compiled by Solvent Extractors' Association of India, the total exports of oilmeals for the month of October 2012 were reported at 39,058 tonnes, down 56.50% from the last year in the same period. In the Sri Ganganagar spot market in Rajasthan the price edged down by -115 rupee to 4160 rupees per 20 kgs. In yesterday's trading session Mustardseed has touched the low of 4253 after opening at 4279, and finally settled at 4266. For today's session market is looking to take support at 4251, a break below could see a test of 4236 and where as resistance is now likely to be seen at 4283, a move above could see prices testing 4300.

Trading Ideas:

RM Seed  trading range for the day is 4236-4300.

Mustard seed settled flat on drop in supplies due to festive season and higher demand for oilmeal products

Waning export demand of mustardmeal also propelled some selling in futures market.

NCDEX accredited warehouses mustard seed stocks dropped by 90 tonnes to 44138 tonnes.

In the Sri Ganganagar spot market in Rajasthan the price edged down by -115 rupee to 4160 rupees per 20 kgs.