Mustard Seed on NCDEX settled down by -0.04% at 4565 on profit booking after gaining earlier as demand is picking up in physical market due to approaching winter. However there is expectation of higher production in the next season, which encourage the traders to sell their stored mustard in the physical market. As per the latest USDA monthly report, global rapeseed production for 2016/17 is forecast at 67.6 mt, up from 66.9 mt last month and down 3 % from 2015/16. Larger crops are expected from Canada, Australia, and the United States offset a slight decrease for Russia. There are widespread showers in Europe, which is expected to boost rapeseed crop development after, drought prompted farmers to sow less. The GAIN report forecast 2016-17 imports of rapeseed to China at 3.9 tonnes, above the USDA official forecast of 3.8 tonnes. A drought during the summer that hampered rapeseed sowing in the European Union has also caused some crops to emerge in poor condition, clouding the outlook for next year’s harvest of the oilseed. The area sown with rapeseed may rise thanks to relatively attractive prices for the oilseed compared with cereals, with Strategie Grains putting the sown area in the EU at 6.7 million hectares, up from 6.5 million harvested this year. Global oilseed production is forecast up this month, primarily on higher soybean and rapeseed output. Soybean production is projected up for the United States, Brazil, and Canada. Rapeseed crop is raised for Australia and Canada. In Alwar spot market in Rajasthan the prices gained 19.3 rupees to end at 4752.45 rupees per
100 kg. Technically now Rmseed is getting support at 4540 and below same could see a test of 4514 level, And resistance is now likely to be seen at 4608, a move above could see prices testing 4650.

Trading Ideas:

Rmseed trading range for the day is 4514-4650.

Mustard Seed settled flat on profit booking paring its gains seen earlier as demand is picking up due to approaching winter.

However there is expectation of higher production in the next season, which encourage the traders to sell their stored mustard in the physical market.

NCDEX accredited warehouses mustard seed stocks dropped by 461 tonnes to 9306 tonnes.

In Alwar spot market in Rajasthan the prices gained 19.3 rupees to end at 4752.45 rupees per 100 kg.