Mustard yesterday settled down -2.63% at 3515 due to comfortable stocks in local mandies along with favorable sowing progress of kharif oilseeds crop. Market sources indicated that around 50% of the last year's crop is still available in the market. This prompted strong selling by stockiest at every rise in futures market. The futures prices were also pressurized on the account of steady sowing progress of kharif oilseeds in the major producing states. As per the latest data compiled by the Ministry of Agriculture stated that the total sowing acreage of oilseeds as of now, 2013 reported at 186.60 lakh hectares, up 15.17% from the last year in the same year. This was mainly due to the strong acreage of soybeans and Groundnut in the current year. Improved Festive season demand in mandis is there and is expected to support the market sentiments to some extent. 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. Technically market is under long liquidation as market has witnessed drop in open interest by -6.98% to settled at 54920 while prices down -95 rupee, now Mustard is getting support at 3484 and below same could see a test of
3454 level, And resistance is now likely to be seen at 3563, a move above could see prices testing 3612.

Trading Ideas:

Rmseed trading range for the day is 3452-3610.

Mustard seed ended with losses due to comfortable stocks in local mandies along with favorable sowing progress.

Market sources indicated that around 50% of the last year's crop is still available in the market.

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