Mustardseed yesterday traded with the negative node and settled -0.66% down at 3463 on higher production estimates and for the time being futures are exhibiting bearish trend. Mustard seed crop damage due to intense cold wave (frost) in key growing areas has limited the negative trend of mustard seed on both spot and futures market. Bad weather may support the prices on both spot and futures market. The acreage under mustard seed has significantly rose by 2.8 percent to 66.1 million hectares year on year according to the data released by the Ministry of Agriculture as on January 3, 2013. In Rajasthan, 2.78 million ha is under mustard crop an increase of 5.7 percent (year on year). India is expected to produce around 65 lakh tons mustard seed for 2013-14. Rain fall is helpful for vigorous growth of the crop. Cold wave is prevailing in the majority of the RMseed growing areas which is good for the standing crop. However there is threat of some damage to the crop due to frost in many areas. Till 03rd Jan 2013, the sown area under RMseed is 66.1 lakh ha as against 64.3 lakh ha during same period last year. In the Sri Ganganagar spot market in Rajasthan the price edged up by 2.5 rupee to 4227.5 rupees per 20 kgs. In yesterday's trading session Mustardseed has touched the low of 3461 after opening at 3476, and finally settled at 3463. For today's session market is looking to take support at 3451, a break below could see a test of 3439 and where as resistance is now likely to be seen at 3485, a move above could see prices testing 3507.

Trading Ideas:

RM Seed trading range for the day is 3439-3507.

Mustard seed ended with losses on higher production estimates and for the time being futures are exhibiting bearish trend.

Mustard seed crop damage due to intense cold wave (frost) has limited the negative trend of mustard seed

NCDEX accredited warehouses mustard seed stocks gained by 149 tonnes to 13744 tonnes.

In the Sri Ganganagar spot market in Rajasthan the price edged up by 2.5 rupee to 4227.5 rupees per 20 kgs.