Rmseed settled up 0.49% at 3466 on limited supplies in domestic market. The prices were also well supported by possibility of poor rainfall in the current year. The lack of demand in edible oils and worries over the Mustard Meal demand have been the moderating factors for Mustard seed and oil at higher levels. As per the latest crop survey by SEA of India, India`s total mustard seed crop in 2013-14 is estimated at 74.40 lakh tonnes against 67 lakh tonnes of last year. This is mainly due to higher crop estimates in Rajasthan and Gujarat. As per the second advance estimates of Indian government, the total mustard seed production in 2013-14 is estimated at 8.25 million tonnes against 8.03 million tonnes due to higher sowing acreage. According to data from the US Department of Agriculture, the global production of mustard seed in 2014-15 is expected to drop by 3.4 per cent to 68.64 million tonnes from 71 million tonnes a year ago. On the domestic front, data from the Solvent Extractors’ Association of India shows that the sowing area under mustard seed has increased to 71.38 lakh hectare for the 2013-14 crop year (October to September), up 5.8 per cent from the previous year. In the Alwar spot market in Rajasthan the price gained 12.9 rupee to 3468.4 rupees per 20kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 9.66% to settled at 110590 while prices up 17 rupee, now Rmseed is getting support at 3449 and below same could see a test of 3431 level, And resistance is now likely to be seen at 3483, a move above could see prices testing 3499.

Trading Ideas:

Rmseed trading range for the day is 3431-3499.

Mustard seed ended with gains on limited supplies in domestic market.

The prices were also well supported by possibility of poor rainfall in the current year.

NCDEX accredited warehouses mustard seed stocks gained by 130 tonnes to 84703 tonnes.

In the Alwar spot market in Rajasthan the price gained 12.9 rupee to 3468.4 rupees per 20kgs.