Mustard seed yesterday traded with the positive node and settled 1.14% up at 3990 on lower supplies. As per COOIT, the country's rapeseed output is estimated to drop by 12.6% to 6.03mt in the year to June 2012. Limited carry-over stocks of oilseeds in the domestic market as well as global markets, and reports of below normal rains for the third straight week may also provide support to the prices at lower levels. As per 3rd Advance Estimates of Crop Production for 2011/12 released by Ministry of Agriculture which shows production estimates of RM seed of 6.96mt which is much higher as compared to COOIT’s figure of 6.03mt. As per COOIT, the country's rapeseed output is estimated to drop by 12.6% to 6.03mt in the year to June 2012. If monsoon rain remains normal then we expect that kharif oilseeds area may increase which in turn may not allow RMseed prices to move up sharply. In Indian market, volatility will continue to remain there and prices are expected to move in both directions in short term. It appears that short in short term some decline might be seen but long term largely depends up on Indian monsoon progress. Oil meal exports fell by nearly 22% and RM seed meal export fell by 70% during April, compared with the same period last year due to lower crushing and sluggish demand. The total arrivals of mustard seed decreased by 2000 bags at 82000 bags in major mandies. In the Sri Ganganagar spot market in Rajasthan the price edged up by 50 rupee to 3900 rupees per 20 kgs. For today's session market is looking to take support at 3952, a break below could see a test of 3913 and whereas resistance is now likely to be seen at 4012, a move above could see prices testing 4033.

RMSEED

RM Seed trading range for the day is 3913-4033.

Mustardseed settled up by 1.14% on lower supplies and lower output is estimated.

Support seen as limited carry-over stocks of oilseeds in the domestic & global markets.

As per COOIT, the country's rapeseed output is estimated to drop by 12.6% in June 2012.

In the Sri Ganganagar spot market in Rajasthan the price edged up by 50 rupee to 3900 rupees per 20 kgs.

SELL RMSEED JULY BELOW 3940 SL 3980 TGT 3918-3890. NCDEX