Mustard yesterday settled up 0.2% at 3458 due to weak arrivals in local mandies along with strong demand of mustard oil in domestic market. As per the latest release from Ministry of Agriculture, the total sowing acreage of oilseeds reported at 60.69 lakh hectares against 11.82 lakh hectares in the same time last year. This is mainly due to strong sowing progress of soyabean and Groundnut in the major producing states. The latest data revealed that the total acreage of these two crops increased by 273% and 580% so far in the current year. The strong surge in overall sowing acreage in kharif oilseeds prompted strong liquidation of mustard seed stocks in the local mandies. The average weekly arrivals of mustard seed in local mandies were still higher than previous year due to strong production in the current year along with steady selling with the anticipation of weak demand in the coming days. The average daily arrivals of mustard seed in local mandies were reported at around 1.80-1.90 lakh bags against 0.80-1 lakh bags seen in last year in the same time. According to COOIT', the total output of mustard seed in the country is seen at 71.50 lakh tonnes, up 12.70% on the year. The mustard seed arrivals are slipping in major mandies now as growers respond to the poor prices. In the Alwar spot market in Rajasthan the price gained 23 rupee to 3481 rupees per 20kgs. Now Mustard is getting support at 3449 and below same could see a test of 3440 level, And resistance is now likely to be seen at 3469, a move above could see prices testing 3480.

Trading Ideas:

Rmseed trading range for the day is 3441-3481.

Mustard seed ended with gains due to weak arrivals in local mandies along with strong demand

The total sowing acreage of oilseeds reported at 60.69 lakh hectares against 11.82 lakh hectares

NCDEX accredited warehouses jeera stocks gained by 64 tonnes to 8527 tonnes.

In the Alwar spot market in Rajasthan the price gained 23.15 rupee to 3481.25 rupees per 20kgs.