Mustardseed yesterday traded with the positive node and settled 1.22% up at 4318 on depleting stocks and higher purchases from oil millers. Rape seed or mustard crop is also likely to be 10-15 per cent higher than last year at about 6.5 mt in this season mainly due to good rainfall and better soil condition in the producing areas Last year, the overall mustard output stood at 5.34 mt. India's 2012/13 rapeseed output is likely to grow nearly 25 percent to 6.5 million tonnes. 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. Please note that Rabi season starts from October. Sown area is likely to increase this year. 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 up by 25 rupee to 4300 rupees per 20 kgs. In yesterday's trading session Mustardseed has touched the low of 4266 after opening at 4278, and finally settled at 4318. For today's session market is looking to take support at 4281, a break below could see a test of 4244 and where as resistance is now likely to be seen at 4340, a move above could see prices testing 4362.

Trading Ideas:

RM Seed  trading range for the day is 4244-4362.

Mustard seed ended with gains on depleting stocks and higher purchases from oil millers.

Mustard crop is also likely to be 10-15 per cent higher than last year at about 6.5 mt in this season

NCDEX accredited warehouses mustard seed stocks dropped by 500 tonnes to 43638 tonnes.

In the Sri Ganganagar spot market in Rajasthan the price edged up by 25 rupee to 4300 rupees per 20 kgs.