Mustard Seed on NCDEX settled up by 1.09% at 4736 tracking firmness in spot demand amid shot covering. Reports of increase in MSP and expectation of pick up demand from the oil mills may support prices in coming weeks. According to latest USDA report, rapeseed crop is lowered for the European Union and Russia, offsetting a modest increase in Canada. The world production of 66.86 mt is forecasted for 2016/17 season. Canada rapeseed exports are up 200,000 tons to 9.6 mt, on a larger production forecast and strong global demand while rapeseed imports are up 500,000 tons to 3.5 mt in response to a lower production. Driven by higher yield of mustard seed, India’s oilseed production is seen higher by about 7 lakh tonnes (lt) for the year 2015-16 rabi season, according to the industry estimates. The Central Organisation for Oil Industry and Trade (COOIT) has pegged the overall rabi oilseed crop for 2015-16 at 77.41 lt – about 7.47 lt higher from the previous year’s 69.94 lt. Moreover, weakness in mustard meal oilseeds also added selling in local mandies. As per the latest release from Solvent Extractors' Association of India , the export of oilmeals during June 2016 is reported at 0.43 lakh tons compared to 0.58 lakh tons of the last year in the same period. In Alwar spot market in Rajasthan the prices gained 38.6 rupees to end at 4849 rupees per 100 kg.Technically market is under short covering as market has witnessed drop in open interest by -2.42% to settled at 59740 while prices up 51 rupee, now Rmseed is getting support at 4667 and below same could see a test of 4597 level, And resistance is now likely to be seen at 4776, a move above could see prices testing 4815.

Trading Ideas:

Rmseed trading range for the day is 4597-4815.

Mustard seed prices ended with gains tracking firmness in spot demand amid shot covering.

According to latest USDA report, rapeseed crop is lowered for the European Union and Russia, offsetting a modest increase in Canada.

NCDEX accredited warehouses mustard seed stocks dropped by 1494 tonnes to 29772 tonnes.

In Alwar spot market in Rajasthan the prices gained 38.6 rupees to end at 4849 rupees per 100 kg.