Mustard yesterday settled up 1.02% at 3857 as old stocks are almost exhausted, but moved in a narrow range as weather conditions favoured the on-going sowing for the main winter oilseed crop in key areas. There is speculation in the market with regard to the change in the sown area under RMSeed this year particularly in Rajasthan. Till now the sown area under oilseeds is 28.89 vs 22.36 LH during same period last year. RMseed sown area stands at 23.70 vs 17.97 LH during same period last year. The weather conditions are quite conducive for the crop cultivation. Traders are worried that the demand for Mustardmeal from overseas markets could ease in coming days after the massive spurt in October. According to the latest data from the Sea Of India, the total Mustard Meal exports from the country stood at 143848 tonnes in October, up nearly 140% from the month of September. However, for the oil year (November-October), the Mustard Meal exports slipped 34% to 561516 tonnes. RM seed had gained in a solid manner in last few days and has managed to hit its highest level in nearly nine months. The latest agri ministry data shows that the acreage of oilseeds- primarily Rapeseed stood at 28.89 lakh hectares up nearly 30% compared to the last year. In the Alwar spot market in Rajasthan the price dropped -6 rupee to 3719 rupees per 20kgs. Technically market is under short covering as market has witnessed drop in open interest by -3.23% to settled at 43780 while prices up 39 rupee, now Mustard is getting support at 3812 and below same could see a test of 3766 level, And resistance is now likely to be seen at 3893, a move above could see prices testing 3928.

Trading Ideas:

Rmseed trading range for the day is 3768-3930.

Mustard seed ended up as old stocks are almost exhausted, but moved in a narrow range.

There is speculation in the market with regard to the change in the sown area under RMSeed this year particularly in Rajasthan.

NCDEX accredited warehouses mustard seed stocks gained by 192 tonnes to 14099 tonnes.

In the Alwar spot market in Rajasthan the price dropped -6.45 rupee to 3719.45 rupees per 20kgs.