Rmseed settled down -0.48% at 3288 as favourable weather conditions supports increasing sowing acreage of the oilseed bolstering the prospects of higher production. Sowing of mustard seed surged to 7.11 million hectares until Jan 31 compared to 6.71 million hectares for the same period year ago, data from Farm Ministry showed. Given the rise in sowing area and favourable crop report, future of both mustard and mustard oil appears bearish in the coming days. However, recent rains and biting cold in mustard-growing areas threaten to damage the crop prospects to some extent. Cold wave conditions are prevailing in some parts of Rajasthan and these extreme cold weather for a prolonged period can trim rapeseed yields. Dense to moderate fog would occur at a few places over north Rajasthan during next 48 hours. Moderate fog would occur at a few places over north Madhya Pradesh. Sowing of mustard seed surged to 7.03 million hectares until Jan 10 compared to 6.62 million hectares for the same period year ago, data from Farm Ministry showed. As per market sources, below average temperature in major mustard seed producing states such as Punjab, Rajasthan and Uttar Pradesh will encourage the productivity of mustard seed crop in the current year. The oil recovery rate is also expected to reach 41-42 % against the average of 39-40%. In the Alwar spot market in Rajasthan the price dropped -51.5 rupee to 3378.25 rupees per 20kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -1.99% to settled at 57090 while prices down -16 rupee, now Rmseed is getting support at 3278 and below same could see a test of 3268 level, And resistance is now likely to be seen at 3302, a move above could see prices testing 3316.

Trading Ideas:

Rmseed trading range for the day is 3268-3316.

Mustard seed ended with losses as favourable weather conditions supports increasing sowing acreage of the oilseed bolstering the prospects of higher production.

Sowing of mustard seed surged to 7.1 million hectares until Jan 31 compared to 6.7 million hectares for the same period year ago.

NCDEX accredited warehouses mustard seed stocks dropped by 452 tonnes to 5842 tonnes.

In the Alwar spot market in Rajasthan the price dropped -51.5 rupee to 3378.25 rupees per 20kgs.