Mustard yesterday settled down -1.28% at 3317 tracking weakness in spot demand as arrivals in physical markets are gradually improving. Good rain fall activities are expected to boost mustard seed production this year. As per latest crop estimates by Solvent Extractors Association of India (SEA), the overall mustard seed crop is estimated to increase by almost 18% from the last year to 71.12 lakh tonnes in the current year due to strong production estimates in Rajasthan and Haryana. As per the latest USDA report, China rapeseed production is projected at 13.5 million tons, up 0.9 million based on increased area and yield indicated in recently released official government statistics. After a steep decline last year, mustard oil production is likely to rise 27% in India this year due to record mustard seed production in the ongoing rabi season. If monsoon rain fall continues with its persisting trend then the mustard seed production is expected to touch higher level there by pressuring the commodity prices to certain extent. China's Mustard production is expected to decline from 13500 (000MT) in 2012-13 to 13000 (000MT) in 2013-14 as per the latest estimate by USDA. In the Alwar spot market in Rajasthan the price dropped -6 rupee to 3423 rupees per 20kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -4.53% to settled at 108510 while prices down -43 rupee, now Mustard is getting support at 3288 and below same could see a test of 3260 level, And resistance is now likely to be seen at 3361, a move above could see prices testing 3406.

Trading Ideas:

Rmseed trading range for the day is 3259-3405.

Mustard seed ended with losses tracking weakness in spot demand as arrivals in physical markets are gradually improving.

Good rain fall activities are expected to boost mustard seed production this year.

NCDEX accredited warehouses mustard seed stocks dropped by 2310 tonnes to 96932 tonnes.

In the Alwar spot market in Rajasthan the price dropped -6.45 rupee to 3423.3 rupees per 20kgs.