Mustard Seed on NCDEX settled up by 2.08% at 3967 tracking firmness in spot demand amid lower level buying. However upcoming mustard crop has entered into the prodding stage and weather is favourable till next week due to which traders are anticipating that new mustard crop will be higher by around 10-15% over last year. Buyers are hesitant to source the commodity despite lower stocks in the country as they anticipate poor demand for mustard oil and mustard oilcake will offset thin stocks. 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. 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 Alwar spot market in Rajasthan the prices gained 51.5 rupees to end at 4334 rupees per 100 kg.Technically market is under fresh buying as market has witnessed gain in open interest by 3.03% to settled at 24120 while prices up 81 rupee, now Rmseed is getting support at 3910 and below same could see a test of 3852 level, And resistance is now likely to be seen at 4000, a move above could see prices testing 4032.

Trading Ideas:

Rmseed trading range for the day is 3852-4032.

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

However upcoming mustard crop has entered into the prodding stage and weather is favourable till next week.

NCDEX accredited warehouses mustard seed stocks gained by 100 tonnes to 3323 tonnes.

In Alwar spot market in Rajasthan the prices gained 51.5 rupees to end at 4334 rupees per 100 kg.