Rmseed settled up 0.26% at 3462 due to weak supplies in local mandies along with strong demand of mustard meal. As per the latest release from Solvent Extractors' Association of India, the export data for export of oilmeals for the month of May 2014 reported at 0.95 lakh tons compared to 0.88 lakh tons in March, 2013 i.e. up 7.92%.The market sources suggest that possible decline in mustard seed production in the current year has reduced the cultivators selling at lower levels. The market sources suggest that the total production of mustard seed is estimate at 67 lakh tonnes against the previous estimate of 71 lakh tonnes for the current year. The arrivals are in the range of 90,000—110,000 bags of 85 Kg each. 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 7.7 rupee to 3481.25 rupees per 20kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 3.39% to settled at 120810 while prices up 9 rupee, now Rmseed is getting support at 3446 and below same could see a test of 3427 level, And resistance is now likely to be seen at 3479, a move above could see prices testing 3493.

Trading Ideas:

Rmseed trading range for the day is 3425-3491.

Mustard seed ended with gains due to weak supplies in local mandies along with strong demand of mustard meal.

The market sources suggest that possible decline in mustard seed production in the current year has reduced the cultivators selling at lower levels.

NCDEX accredited warehouses mustard seed stocks gained by 71 tonnes to 84814 tonnes.

In the Alwar spot market in Rajasthan the price gained 7.7 rupee to 3481.25 rupees per 20kgs.