Mustardseed yesterday traded with the positive node and settled 0.83% up at 4148 due to tight supply in the local markets along with lower production concerns in 2012-13 but upside was limited amid an estimated rise output hurt sentiment but downside was limited. Continuous rains are seen in MP and Rajasthan region which may result in to delay in soybean crushing during October which will directly lead to less domestic oil availability in the festive season of Diwali. Demand of RMseed is likely to boost up in the coming days due to festive demand. Sowing of rapeseed starts from October and north-western Rajasthan is the top producing area in the country. Good rainfall in rapeseed cultivating regions in the past one month can lift the output of the winter-sown oilseed in 2012/13. It may rise 9 percent to 6 million tonnes. The total stocks of around 18-20 lakh tonnes have been reported in the major producing states against the total requirement of 20-21 lakh tonnes considering 4-5 lakh tonnes monthly) till February month. In the Sri Ganganagar spot market in Rajasthan the price edged down by 95 rupee to 4050 rupees per 20 kgs. In yesterday's trading session Mustardseed has touched the low of 4031 after opening at 4130, and finally settled at 4148. For today's session market is looking to take support at 4069.3, a break below could see a test of 3990.7 and where as resistance is now likely to be seen at 4188.3, a move above could see prices testing 4228.7.

Trading Ideas:

RM Seed  trading range for the day is 3991-4229.

Mustardseed dropped tracking weakness in spot demand and oilseed counters amid an estimated rise output

Demand of RMseed is likely to boost up in the coming days due to festive demand.

NCDEX accredited warehouses mustard seed stocks dropped by 3145 tonnes to 93202 tonnes.

In the Sri Ganganagar spot market in Rajasthan the price edged down by -95 rupee to 4050 rupees per 20 kgs.