Rmseed settled up 0.12% at 3475 on some buying support after prices dropped due to strong domestic production estimates in the current year along with comfortable stocks in local mandies.  A prolonged cold wave can affect the vegetative growth of rapeseed.  It can have a negative impact on yields.  Cold wave conditions are prevailing in some parts of Rajasthan, the top rapeseed producer, the weather department said.

Indian farmers had cultivated rapeseed on 6.75 million hectares as of Dec. 19, compared with 6.36 million hectares a year earlier.  As per the latest release from Ministry of agriculture, the sowing acreage of mustard seed was 68.86 lakh hectares as on now as against 64.48 lakh hectares a year ago.  This was mainly on account of higher area under the crop in major producing states such as Rajasthan and Madhya Pradesh (MP).  Traders mentioned that below-average temperature in some parts of Rajasthan, MP and Uttar Pradesh will encourage the sowing of mustard seed over other short duration crops like coriander and jeera.

According to the latest data from the Sea Of India, the total Mustard Meal exports from the country stood at 27000 tonnes in November, down nearly 50% from the month of October. R M seed had gained in a solid manner in last few days and has managed to hit its highest level in nearly nine months.  In the Alwar spot market in Rajasthan the price gained 20.6 rupee to 3682.1 rupees per 20kgs.  Technically market is under fresh buying as market has witnessed gain in open interest by 6.61% to settled at 22260 while prices up 4 rupee, now Rmseed is getting support at 3457 and below same could see a test of 3439 level, And resistance is now likely to be seen at 3491, a move above could see prices testing 3507.

Trading Ideas:

Rmseed trading range for the day is 3439-3507.

Mustard seed ended with small gains on some buying support after prices dropped due to strong domestic production estimates

A prolonged cold wave can affect the vegetative growth of rapeseed.  It can have a negative impact on yields.

Cold wave conditions are prevailing in some parts of Rajasthan, the top rapeseed producer.

In the Alwar spot market in Rajasthan the price gained 20.6 rupee to 3682.1 rupees per 20kgs.