Mustard Seed on NCDEX settled up by 0.9% at 3913 tracking firmness in spot demand amid lower level buying. Mustard sowing is completed on 6.953 million hectare as compared to 6.276 million hectare, higher by 10.8%. Congenial sowing conditions and higher prices forced farmers to take buoyant sowing of Mustard in Rajasthan, Madhya Pradesh and Uttar Pradesh. Mustard sowing in Uttar Pradesh has crossed normal acreage of the season. Favourable weather conditions (cool and dry) during last month has led Mustard crop to be good to excellent conditions. Temperatures were reported below normal during last 7-8 days which will help in improving the crop conditions in turn on yields. Crop is in vegetative to flowering and pod formations. The spell of cold day and night in coming fortnight is likely to continue which will boost flowering and pod formation. No major pest/disease threat reported from Key regions. As per agriculture ministry data, all-India acreage of mustard in the ongoing rabi season was nearly 1.9 mln ha, up 175.2% from a year ago. The country's production of rapeseed is expected to increase by 12.5% to 6.3 mt from a year earlier. In Madhya Pradesh, the oilseed has been sown over 58,000 ha, up 76% from 33,000 ha sown a year ago. In Alwar spot market in Rajasthan the prices dropped -51.5 rupees to end at 4231 rupees per 100 kg.Technically market is under short covering as market has witnessed drop in open interest by -2.6% to settled at 21330 while prices up 35 rupee, now Rmseed is getting support at 3880 and below same could see a test of 3847 level, And resistance is now likely to be seen at 3947, a move above could see prices testing 3981.

Trading Ideas:

Rmseed trading range for the day is 3847-3981.

Mustard seed prices ended with gains tracking firmness in spot demand amid lower level buying.

Congenial sowing conditions and higher prices forced farmers to take buoyant sowing of Mustard in Rajasthan, Madhya Pradesh and Uttar Pradesh.

NCDEX accredited warehouses mustard seed stocks dropped by 20 tonnes to 3364 tonnes.

In Alwar spot market in Rajasthan the prices dropped -51.5 rupees to end at 4231 rupees per 100 kg.