Mustardseed yesterday traded with the negative node and settled -1.96% down at 3859 due to profit booking though downside was limited on account of lower production estimates of RM Seed this year as compared to last year due to lower sowing acreage along with firm demand from the millers. India's rapeseed output is estimated to drop 12.6 percent to 6.03 million tonnes in the year to June 2012. The country's rapeseed output is estimated to drop by 12.6 percent to 6.03 million tonnes in the year to June 2012, said the Central Organisation for Oil Industry and Trade (COOIT). So far as the market arrivals are concerned, they are in full swing in the major mandis of Rajasthan, UP and MP. The months of March and April are expected to witness high import of edible oils which will ease some pressure on the domestic edible oil industry. Further RM seed arrivals will be in full swing during this period. It is quite possible that after witnessing some more upside, prices start witnessing correction. Thus a very cautious trade is advised on current levels. The total arrivals of mustard seed increased by 20000 bags at 6 lakh bags in major mandies. In the Sri Ganganagar spot market in Rajasthan the price edged up by 33.75 rupee to 3866.25 rupees per 20 kgs. In yesterday's trading session Mustardseed has touched the low of 3837 after opening at 3930, and finally settled at 3859. For today's session market is looking to take support at 3813, a break below could see a test of 3767 and where as resistance is now likely to be seen at 3929, a move above could see prices testing 3999.

Trading Ideas:

RM Seed  trading range for the day is 3767-3999.

Mustardseed yesterday traded with the negative node due to profit booking

India's rapeseed output is estimated to drop 12.6 percent to 6.03 million tonnes in the year to June 2012

The total arrivals of mustard seed increased by 20000 bags at 6 lakh bags in major mandies

In the Alwar spot market in Rajasthan the price edged up by 33.75 rupee to 3866.25 rupees per 20 kgs.