Rmseed settled up 0.69% at 3370 tracking firmness in spot demand and other oilseed counters despite of expanded acreage and expectation of higher production. Sowing of mustard seed surged to 7.12 million hectares until Feb 7 compared to 6.72 million hectares for the same period year ago, data from Farm Ministry showed. 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 88.25 lakh hectares, up 3.21%. The acreage under mustard seed stood at 71.35 lakh hectares, up 6%. Latest rabi sowing data from the government shows that acreage under oilseeds stood at 88.40 lakh hectares, up more than 3% compared to the last year. Spot prices of RM Seed in Jaipur are trading at Rs 3400, down Rs 10 per quintal on the day. The total arrivals in Rajasthan remained around 32,000 - 42,000 bags. The world production and carryover stocks of rapeseed are on the rise creating a bearish sentiment for the international & domestic market. The total carryover stocks of mustard seed in local mandies have been reported at 12-14 lakh tonnes , up 40% from the last year due to strong production in the previous year along with limited crushing of mustard seed at higher levels. In the Alwar spot market in Rajasthan the price gained 77.25 rupee to 3507 rupees per 20kgs. Technically market is under short covering as market has witnessed drop in open interest by -1.74% to settled at 59450 while prices up 23 rupee, now Rmseed is getting support at 3348 and below same could see a test of 3326 level, And resistance is now likely to be seen at 3382, a move above could see prices testing 3394.

Trading Ideas:

Rmseed trading range for the day is 3325-3393.

Mustard seed ended with gains tracking firmness in spot demand and other oilseed counters despite of expanded acreage.

Sowing of mustard seed surged to 7.12 million hectares until Feb 7 compared to 6.72 million hectares for the same period year ago.

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

In the Alwar spot market in Rajasthan the price gained 77.25 rupee to 3507 rupees per 20kgs.