Rmseed on NCDEX settled down -0.4% at 3773 tracking weakness in spot demand and over supply worries. Availbility of cheaper oil option and expectation of higher output kept mustard prices under pressure. The shipment of rapeseed- mustard oil also increased to 17,878 tonnes from 7,461 tonnes, but the import of soyabean oil fell to 166,573 tonnes from 441,200 tonnes in the period under review. “Importers continue to make larger import purchases of sunflower oil, taking advantage of the still large price discount versus soyabean oil,” SEA said. As on February 1, the stock of edible oils at various ports was estimated to be at 1.73 mt which is equal to 32 days requirements. India's monthly requirement is about 1.65 mt, SEA said. China sells 98,727 tonnes of rapeseed oil at auction of state reserves. Sale represents 100 pct of the 98,727 tonnes of rapeseed oil available at auction 4,987 tonnes of 2012 rapeseed oil sold, at an average price of 7,098 yuan ($1,033.74) per tonne 93,740 tonnes of 2013 rapeseed oil sold, at an average price of 6,710 yuan per tonne. 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. Technically market is under long liquidation as market has witnessed remain unchanged in open interest by 0% to settled at 51380 while prices down -15 rupees, now Rmseed is getting support at 3756 and below same could see a test of 3738 level, And resistance is now likely to be seen at 3788, a move above could see prices testing 3802.

Trading Ideas:

# Rmseed trading range for the day is 3738-3802.

# Mustard seed prices ended with losses tracking weakness in spot demand and over supply worries.

# Availbility of cheaper oil option and expectation of higher output kept mustard prices under pressure.

# China sells 98,727 tonnes of rapeseed oil at auction of state reserves.

# In Alwar spot market in Rajasthan the prices gained 12.9 Rupees to end at 3986.4 Rupees per 100 kg.