Mustard Seed settled flat amid regular purchase inquiries from major trading centres of Rajasthan. According to latest USDA report, global rapeseed production is forecast to decline 3.5 million tons in 2015/16 as a slight decrease in area reduces total output to 68.1 million tons. In Europe, Oil World has estimated the production of 22 million tons as compared to 24.1 million tons in 2014/15. Global rapeseed production, as indicated in the USDA report, is reduced 2.6 million tons as hot and dry weather curtailed yields in Canada and the EU, while harvested area is lowered for Ukraine, Belarus, and Australia. Other changes include lower EU sunflower seed production, and reduced cottonseed production for India and China. On the other hand, China's NSB estimated MY15/16 domestic summer harvested rapeseed production at 13.88 million tons, up 1.2 percent over the previous year. Total production is thus likely to reach 14.9 million tons if the autumn harvested production is included. However, the marketing of the MY15/16 crop appeared to be very slow as traders/farmers determined when to do business. In Canada, rapeseed production estimated at a 3-year low to 13mt, down from 15.5mt y-o-y due to dry conditions. Similarly, production in China and EU forecasted to reduce to 14.1mt and 21 mt from 14.6mt and 24.4mt resp y-o-y. In the Alwar spot market in Rajasthan the price gained 74.3 rupee to 4395.85 rupees per 100kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -0.96% to settled at 71340, now Rmseed is getting support at 4181 and below same could see a test of 4161 level, And resistance is now likely to be seen at 4217, a move above could see prices testing 4233.

Trading Ideas:

Rmseed trading range for the day is 4161-4233.

Mustard seed prices settled flat amid regular purchase inquiries from major trading centres of Rajasthan.

Global rapeseed production is forecast to decline 3.5 million tons in 2015/16 as a slight decrease in area reduces total output to 68.1 million tons.

NCDEX accredited warehouses mustard seed stocks dropped by 171 tonnes to 65369 tonnes.

In the Alwar spot market in Rajasthan the price gained 74.3 rupee to 4395.85 rupees per
100kgs.