Mustard Seed on NCDEX settled down by -0.65% at 3793 on expectation of higher supply. President of MOPA said mustard that carry over stock as of Feb 1 is pegged at 400,000 ton. The upcoming mustard crop is in very good condition so the production of mustard this year is likely to be in the range of 6.5-7 million tons. With the expectation of good crop in 2016/17, the new season supplies will be at higher size in the country. In addition to that the carryover stocks from last year might be higher as country imported record mustard oil and exported multiyear low mustard meal. However, the prices will get some support from the increase in minimum support price (MSP) of Rapeseed & Mustard to Rs. 3,700 per quintal for 2016/17 from Rs. 3,350 per quintal last year. Further the mustard crop is still waiting for harvest the weather will be very crucial in next one month. Sowing of mustard has ended, with acreage of the key oilseed rising 9.3% on year to 7.06 mln ha this rabi season, data released by the agriculture ministry showed. The acreage under the oilseed has increased on year because of favourable weather conditions and adequate soil moisture, following good southwest monsoon rains. Rains in the last week in north India, including Rajasthan, have helped the crop in grain formation stage which will improve the yield. In Alwar spot market in Rajasthan the prices dropped -77.25 Rupees to end at 4025 Rupees per 100 kg. Technically market is under fresh selling as market has witnessed gain in open interest by 11.42% to settled at 49160 while prices down -25 rupees, now Rmseed is getting support at 3778 and below same could see a test of 3764 level, And resistance is now likely to be seen at 3811, a move above could see prices testing 3830.

Trading Ideas:

# Rmseed trading range for the day is 3764-3830.

# Mustard seed prices ended with losses on expectation of higher supply.

# President of MOPA said mustard that carry over stock as of Feb 1 is pegged at 400,000 ton.

# The upcoming mustard crop is in very good condition so the production of mustard is likely to be in the range of 6.5-7 million tons

# In Alwar spot market in Rajasthan the prices dropped -77.25 Rupees to end at 4025 Rupees per 100 kg.