Mustard Seed on NCDEX settled up by 0.37% at 3834 on short covering after prices gained on expectation of higher supply. Pressure seen on prices after government reported robust sowing data for the week ended to Jan 27. According to Agriculture Ministry's data Indian farmers have planted mustard seed on 7.05 million hectare area up 9.30%. In the same period a year ago sowing was 6.45 million hectare, data showed. After a drop in output over the past two years, production of mustard is seen rebounding this year on the back of higher rabi acreage. Trade sources estimate the crop to be between 6.5 and 7 million tonnes, mainly on account of the higher acreage and prevailing weather conditions in the major producing States of Rajasthan and Madhya Pradesh. Mustard planting is almost complete and per the latest data from the Agriculture Ministry, the rabi acreage under the oilseed has registered a 10.1 per cent increase over last year. The major increase in absolute acreage has come about in Rajasthan, where farmers have planted the oilseed on an additional 3.55 lakh ha or 14.53 per cent more compared to last year. “The crop is currently in the flowering stages and the prevailing weather conditions have been supportive. There has been no incidence of pests or diseases reported so far. The crop prospects were looking better on higher area coverage this year,” an official said. In Alwar spot market in Rajasthan the prices dropped -25.75 Rupees to end at 4102.25 Rupees per 100 kg.Technically now Rmseed is getting support at 3808 and below same could see a test of 3782 level, And resistance is now likely to be seen at 3853, a move above could see prices testing 3872.

Trading Ideas:

Rmseed trading range for the day is 3782-3872.

Mustard seed prices ended with gains on short covering after prices gained on expectation of higher supply.

According to Agriculture Ministry's data Indian farmers have planted mustard seed on 7.05 million hectare area up 9.30%.

NCDEX accredited warehouses mustard seed stocks dropped by 129 tonnes to 398 tonnes.

In Alwar spot market in Rajasthan the prices dropped -25.75 Rupees to end at 4102.25 Rupees per 100 kg.