Mustard yesterday settled down -0.99% at 3517 as an estimated rise in production weighed on sentiments. Arrivals in physical markets are gradually improving which may also not allow prices to see any sharp upside movement. The Industry estimated 71.5 Lakh tons of RMseed production this year. In Physical markets prices have improved considerably during recent past. However satisfactory monsoon progress does not allow market to witness sharp rise in prices. As per latest crop estimates by Solvent Extractors Association of India (SEA), the overall mustard seed crop is estimated to increase by almost 18% from the last year to 71.12 lakh tonnes in the current year due to strong production estimates in Rajasthan and Haryana. As per the latest USDA report, China rapeseed production is projected at 13.5 million tons, up
0.9 million based on increased area and yield indicated in recently released official government statistics. After a steep decline last year, mustard oil production is likely to rise 27% in India this year due to record mustard seed production in the ongoing rabi season. In the Alwar spot market in Rajasthan the price dropped 10 rupee to 3522 rupees per 20kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 4.78% to settled at 110430 while prices down -35 rupee, now Mustard is getting support at 3502 and below same could see a test of 3487 level, And resistance is now likely to be seen at 3547, a move above could see prices testing 3577.

Trading Ideas:

Rmseed trading range for the day is 3537-3627.

Mustard seed ended with losses as an estimated rise in production weighed on sentiments.

Arrivals in physical markets are gradually improving which may also not allow prices to see any sharp upside.

NCDEX accredited warehouses mustard seed stocks gained by 694 tonnes to 81419 tonnes.

In the Alwar spot market in Rajasthan the price gained 19.3 rupee to 3532.75 rupees per 20kgs.