Mustardseed yesterday traded with the positive node and settled 0.67% up at 3931 tracking gains in spot demand amid firmness in other oilseed counters. However demand is likely to pick up soon as festive season is approaching. In Rajasthan, which is the major RMseed growing states, fields are ready for sowing activities. Area under mustard seed is expected to be higher by 5% and will be around 7.2 million hectares. Last year the area under mustard seed was 6.8 million ha, but the crop last year was impacted due to unfavourable weather conditions. Mustard crop is also likely to be 10-15 per cent higher than last year at about 6.5 mt in this season mainly due to good rainfall and better soil condition in the producing areas Last year, the overall mustard output stood at 5.34 mt. Sources also stated that the total daily arrivals of mustard seed remained steady in the last trading at around 60-70 thousand bags. Sources mentioned that the total sowing acreage of mustard seed is likely to reach 65-67 lakh hectares in the coming year, up almost 10-12% from the last year due to better soil moisture level in major producing states along with remunerative prices across all the mandies. In the Sri Ganganagar spot market in Rajasthan the price edged down by -25 rupee to 3975 rupees per 20 kgs. In yesterday's trading session Mustardseed has touched the low of 3853 after opening at 3878, and finally settled at 3931. For today's session market is looking to take support at 3873.7, a break below could see a test of 3816.3 and where as resistance is now likely to be seen at 3967.7, a move above could see prices testing 4004.3.

Trading Ideas:

RM Seed trading range for the day is 3816-4004.

Mustard seed ended higher tracking gains in spot demand amid firmness in other oilseed counters.

However demand is likely to pick up soon as festive season is approaching.

NCDEX accredited warehouses mustard seed stocks dropped by 692 tonnes to 70628 tonnes.

In the Sri Ganganagar spot market in Rajasthan the price edged down by -25 rupee to 3975 rupees per 20 kgs.