Mustardseed yesterday traded with the negative node and settled -0.65% down at 3514 tracking weakness in spot demand after prices rose due to weak arrivals in local mandies. The Industry estimated 71.5 lakh tons of Mustard seed production this year. This will put pressure on the prices in near future. As per market sources, restricted supplies by farmers at lower levels along with strong supplies of wheat at higher rates might have reduced the total mustard seed arrivals in all the major producing states. The total daily arrivals of around 3.50-3.80 lakh bags were reported in local mandies, down almost 0.40-0.50 lakh bags from the last week. Moreover, strong mustard meal export demand also support the prices in the near term. The latest data compiled by the Solvent Extractors' Association of India (SEA of India ), during April 2013 is reporting exports at 0.54 lakh tonnes compared to 0.45 lakh tonnes in April 2012 i.e. up by 20%. The total arrivals of new mustard seed were reported at 2.75 lakh bags , up 15 thousand from the last day. China's rapeseed oil imports in the first quarter this year jumped 69 percent on the year to 387,234 tons, the majority of which came from Canada, according to official customs data. In the Alwar spot market in Rajasthan the price edged up by 36.05 rupee to 3491.55 rupees per 20 kgs. In yesterday's trading session Mustardseed has touched the low of 3513 after opening at 3545, and finally settled at 3514. For today's session market is looking to take support at 3503, a break below could see a test of 3492 and where as resistance is now likely to be seen at 3535, a move above could see prices testing 3556.

Trading Ideas:

RM Seed  trading range for the day is 3492-3556.

Mustard seed dropped tracking weakness in spot demand after prices rose due to weak arrivals in local mandies.

The Industry estimated 71.5 lakh tons of Mustard seed production this year.

NCDEX accredited warehouses mustard seed stocks gained by 926 tonnes to 67353 tonnes.

In the Alwar spot market in Rajasthan the price edged up by 36.05 rupee to 3491.55 rupees per 20 kgs.