Rmseed settled up 0.51% at 3372 on short covering despite pressure in spot market as estimates of higher rapeseed output weighed on spot prices. India is expected to harvest 8.25 million tonnes of rapeseed in 2014 as compared with 7.8 million tonnes a year ago, the farm ministry said. Government second advanced estimates showed total production of mustard seed in 2013-14 is seen at 8.25 million tons against 7.3 million tons in the previous year on the account of higher sowing acreage in major producing states along with strong yield rates due to better crop conditions. 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. In the Alwar spot market in Rajasthan the price dropped -70.8 rupee to 3436.2 rupees per 20kgs. Technically market is under short covering as market has witnessed drop in open interest by -1.52% to settled at 57640 while prices up 17 rupee, now Rmseed is getting support at 3344 and below same could see a test of 3315 level, And resistance is now likely to be seen at 3393, a move above could see prices testing 3413.

Trading Ideas:

Rmseed trading range for the day is 3316-3414.

Rmseed settled up on short covering despite pressure in spot market as estimates of higher rapeseed output weighed on spot prices.

India is expected to harvest 8.25 million tonnes of rapeseed in 2014 as compared with 7.8 million tonnes a year ago

Government second advanced estimates showed total production of mustard seed in 2013-14 is seen at 8.25 million tons

In the Alwar spot market in Rajasthan the price dropped -70.8 rupee to 3436.2 rupees per 20kgs.