Mustard Seed on NCDEX settled down by -0.35% at 4785 on profit booking after prices gained on improved demand and lower stockpiles of seed in local market. Downside also seen limited on higher demand for mustard oil in domestic market as crude palm oil solidified in winter season. Mustard seed supply in the spot market is limited due to tight liquidity. Most of the farmers are waiting for the liquidity in the market to improve so that they can get cash for the selling of mustard seed. In Madhya Pradesh Mustard Physical Market sources reported arrivals at 20 quintals, lower by 30 quintals from previous day’s arrivals. At Kota market sources reported arrivals at 500 Bags, up by 200 Bags as against previous day. At Jaipur market sources reported arrivals at 3000 Bags, higher by 1000 Bags from previous trading day. The rabi sowing in the largest mustard producing state, Rajasthan has started. According to government data, Rajasthan has sown 13.7 lakh hectares as on 24th Oct 2016, up by 191.5% higher compared to last year acreage. As per agriculture ministry data, all-India acreage of mustard in the ongoing rabi season was nearly 1.9 mln ha, up 175.2% from a year ago. The country's production of rapeseed is expected to increase by 12.5% to 6.3 mt from a year earlier. In Alwar spot market in Rajasthan the prices gained 12.9 rupees to end at 4810.4 rupees per 100 kg.Technically market is under long liquidation as market has witnessed drop in open interest by -1.58% to settled at 35540 while prices down -17 rupee, now Rmseed is getting support at 4768 and below same could see a test of 4752 level, And resistance is now likely to be seen at 4805, a move above could see prices testing 4826.

Trading Ideas:

Rmseed trading range for the day is 4752-4826.

Mustard seed dropped on profit booking after prices gained on improved demand and lower stockpiles of seed in local market.

Mustard seed sowing rose to 5.08 million hectare from 4.25 million hectare due to favorable weather.

NCDEX accredited warehouses mustard seed stocks dropped by 30 tonnes to 4378 tonnes.

In Alwar spot market in Rajasthan the prices gained 12.9 rupees to end at 4810.4 rupees per 100 kg.