Mustardseed yesterday traded with the positive node and settled 1.99% up at 3797 due to rising demand from oil millers and lower estimates of rapeseed output. India's rapeseed output is expected to fall 8.5 percent to 6.3 million tonnes in 2012 on lower acreage of the oilseed crop. SEA of India along with renounced experts of oilseeds Industry made some initial assessment regarding this year’s RMseed production. At all Indian Level, the total production is estimated at 62.68 LT vs 68.50 LT seen last year. Rajasthan is expected to produce 28.78 LT vs 32.50 LT recorded last year. Thus, this year’s production is reduced by 8.50 % from last year. However prices have already rose by more than 40 % during recent past from the last year settlement prices of RM seed April contract which was 2597. Further RMseed arrivals will be in full swing during March. It is quite possible that after witnessing rally in February, prices may witness some correction during March. The total arrivals of mustard seed increased by 0.75 lakh bags at 5.30 lakh bags in major mandies. In the Sri Ganganagar spot market in Rajasthan the price edged up by 32.5 rupee to 3652.5 rupees per 20 kgs. In yesterday's trading session Mustardseed has touched the low of 3723 after opening at 3727, and finally settled at 3797. For today's session market is looking to take support at 3740.3, a break below could see a test of 3683.7 and where as resistance is now likely to be seen at 3836.3, a move above could see prices testing 3875.7.

Trading Ideas:

RM Seed  trading range for the day is 3683-3875.

Mustard seed ended with gains due to rising demand from oil millers and lower estimates of rapeseed output

India's rapeseed output is expected to fall 8.5% to 6.3 mln tns in 2012 on lower acreage of oilseed crop

Rajasthan is expected to produce 28.78 LT vs 32.50 LT recorded last year

In the Alwar spot market in Rajasthan the price edged up by 32.5 rupee to 3652.5 rupees per 20 kgs.