Mustard yesterday settled down -1.36% at 3412 tracking weakness in spot demand amid expectations of higher production. Downside was seen limited as a result of the limited stocks on account of restricted arrivals from the major producing belts. Good monsoon has resulted in to speedy sowing activities of kharif crops in the country. Good rain fall activities are expected to boost mustard seed production this year. The export figure is higher when compared to the 282,833 tons, last year. As per the latest release from Ministry of Agriculture, the total sowing acreage of oilseeds as on 4th July 2013 reported at 110 lakh hectares against 26.50 lakh hectares in the same time last year. This is mainly due to strong sowing progress of soyabean and Groundnut in the major producing states. The latest data revealed that the total acreage of these two crops increased by 337% and 286% so far in the current year. The strong surge in overall sowing acreage in kharif oilseeds prompted strong liquidation of mustard seed stocks in the local mandies. Moreover, fragile mustard meal exported also added some selling in futures market. The latest data compiled by the Solvent Extractors' Association of India ( SEA of India ), the mustard meal exports during June 2013 is reporting at 0.84 lakh tonnes compared to 0.91 lakh tonnes in June
2013 i. e. down by 8%. In the Alwar spot market in Rajasthan the price dropped -18 rupee to 3533 rupees per 20kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 3.66% to settled at 125610 while prices down -47 rupee, now Mustard is getting support at 3394 and below same could see a test of 3375 level, And resistance is now likely to be seen at 3444, a move above could see prices testing 3475.

Trading Ideas:

Rmseed trading range for the day is 3378-3478.

Mustard seed ended with losses tracking weakness in spot demand amid expectations of higher production.

Downside was seen limited as a result of the limited stocks on account of restricted arrivals from the major producing belts.

NCDEX accredited warehouses mustard seed stocks gained by 131 tonnes to 99643 tonnes.