Mustard yesterday settled up 1.63% at 3125 on short covering tracking firmness in spot demand and other oilseed counters. As per the latest release from Ministry of Agriculture, the total sowing acreage of soybean as on now reported at 117 lakh hectares against 101.50 lakh hectares in the same time last year. This is mainly due to strong sowing in both Madhya Pradesh and Rajasthan. Similarly, the total exports of soy meal also declined sharply in the current month. The latest data compiled by the Solvent Extractors' Association of India (SEA of India), the mustard meal exports during June 2013 is reporting at 0.96 lakh tons compared to 1.42 lakh tons in June 2013 i. e. down by 32.30%. As per the latest release from Ministry of Agriculture, the total sowing acreage of oilseeds reported at 136 lakh hectares against 67.50 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. Moreover, comfortable supply situation in local mandies might also result to some selling in futures market. Traders estimated that around 32-35 lakh bags of mustard seed is still available in local mandies. This will encourage strong stockiest selling at higher levels. In the Alwar spot market in Rajasthan the price gained 13 rupee to 3301 rupees per 20kgs. Technically market is under short covering as market has witnessed drop in open interest by -7.14% to settled at 74010 while prices up 50 rupee, now Mustard is getting support at 3057 and below same could see a test of 2990 level, And resistance is now likely to be seen at 3163, a move above could see prices testing 3202.

Trading Ideas:

Rmseed trading range for the day is 2988-3200.

Mustard seed ended with gains on short covering tracking firmness in spot demand and other oilseed counters.

The mustard meal exports during June 2013 is reporting at 0.96 lakh tons compared to 1.42 lakh tons in June 2013

NCDEX accredited warehouses mustard seed stocks dropped by 1594 tonnes to 93406 tonnes.

In the Alwar spot market in Rajasthan the price gained 12.85 rupee to 3301 rupees per 20kgs.