Mustard seed ended with losses as rising area under the commodity spurred hopes of a strong crop. Lack of demand in edible oils and worries over the Mustard Meal demand have been the moderating factors for Mustard seed and oil. According to latest data from the Solvent Extractor's Association (SEA), the acreage under oilseeds stood at 86.22 lakh hectares, up 4.20%. The acreage under mustard seed stood at 70.35 lakh hectares, up 6%. However, the overall fundamentals of the market will encourage the traders to liquidate some of their stocks from higher levels. As per the latest release from Ministry of agriculture, the sowing acreage of mustard seed was 69.76 lakh hectares as on 03rd January as against 65.05 lakh hectares a year ago. This was mainly on account of higher area under the crop in major producing states such as Rajasthan and Madhya Pradesh (MP). According to a trade sources, given the rise in sowing area, production of mustard in the country this year is expected to be around 75 lakh tonnes against 64 lakh tonnes last year. Besides, adequate carryover stock (10-12 lakh bags) is also likely to keep both mustard and mustard oil prices on leash. Due to better soil moisture, the area under mustard seeds has increased to 69.7 lakh hectares. Technically market is under long liquidation as market has witnessed drop in open interest by -3.35% to settled at 38430 while prices down -2 rupee, now Rmseed is getting support at 3402 and below same could see a test of 3393 level, And resistance is now likely to be seen at 3421, a move above could see prices testing 3431.

Trading Ideas:

Rmseed trading range for the day is 3392-3430.

Mustard seed ended with losses as rising area under the commodity spurred hopes of a strong crop.

Lack of demand in edible oils and worries over the Mustard Meal demand have been the moderating factors for Mustard seed.

NCDEX accredited warehouses mustard seed stocks gained by 140 tonnes to 3345 tonnes.

In the Alwar spot market in Rajasthan the price remains unchanged at0 rupee to 3558.5 rupees per 20kgs.