Mustard Seed on NCDEX settled up by 1.61% at 3848 on hope to improving demand tracking firmness in other oilseed counter. With the expectation of good crop in 2016/17, the new season supplies will be at higher size in the country. In addition to that the carryover stocks from last year might be higher as country imported record mustard oil and exported multiyear low mustard meal. However, the prices will get some support from the increase in minimum support price (MSP) of Rapeseed & Mustard to Rs. 3,700 per quintal for 2016/17 from Rs. 3,350 per quintal last year. Further the mustard crop is still waiting for harvest the weather will be very crucial in next one month. India's agriculture department in second advance estimated pegged mustard seed crop at 7.912 million tons as compared to 6.797 million tons a year ago. Sources projected new mustard crop between 6.5-7 million tons. The shipment of rapeseed-mustard oil also increased to 17,878 tonnes from 7,461 tonnes, but the import of soyabean oil fell to 166,573 tonnes from 441,200 tonnes in the period under review. “Importers continue to make larger import purchases of sunflower oil, taking advantage of the still large price discount versus soyabean oil,” SEA said. As on now, the stock of edible oils at various ports was estimated to be at 1.73 mt which is equal to 32 days requirements. In Alwar spot market in Rajasthan the prices gained 51.5 Rupees to end at
3922 Rupees per 100 kg. Technically market is under short covering as market has witnessed drop in open interest by -9.33% to settled at 44980 while prices up 61 rupees, now Rmseed is getting support at 3803 and below same could see a test of 3757 level, And resistance is now likely to be seen at 3886, a move above could see prices testing 3923.

Trading Ideas:

# Rmseed trading range for the day is 3757-3923.

# Mustard seed prices ended with gains on hope to improving demand tracking firmness in other oilseed counter.

# However upside seen limited amid expectation of good crop in 2016/17, the new season supplies will be at higher size in the country.

# India's agriculture department estimated pegged mustard seed crop at 7.912 million tons as compared to 6.797 million tons a year ago.

# In Alwar spot market in Rajasthan the prices gained 51.5 Rupees to end at 3922 Rupees per 100 kg.