Mustardseed yesterday traded with the negative node and settled -0.54% down at 3900 on profit booking though downside was limited amid lower sowing from the producing regions. Lower production estimates of rabi oilseeds (especially RM Seed) this year as compared to last year due to lower sowing acreage coupled with sharp decline in yield and improved demand from millers and stockiest, also supported the futures to trade higher. As per COOIT, the country's rapeseed output is estimated to drop by 12.6 percent to 6.03 million tonnes in the year to June 2012. The overall rabi (November-March) oilseed crop for 2011-12 is estimated to fall to 8.79 million tonnes from 9.87 million tonnes last year, with a drop in sown area from 9.72 million hectares last year to 9.07 million ha this time. The total arrivals of mustard seed decreased by 40000 bags at 5.55 lakh bags in major mandies. In the Sri Ganganagar spot market in Rajasthan the price edged down by -16.25 rupee to 3818.75 rupees per 20 kgs. In yesterday's trading session Mustardseed has touched the low of 3887 after opening at 3923, and finally settled at 3900. For today's session market is looking to take support at 3877.3, a break below could see a test of 3854.7 and where as resistance is now likely to be seen at 3932.3, a move above could see prices testing 3964.7.

Trading Ideas:

RM Seed  trading range for the day is 3855-3965.

Mustard seed settled weak on profit booking though downside was limited amid lower sowing from producing regions

The country's rapeseed output is estimated to drop by 12.6 percent to 6.03 million tonnes in the year

NCDEX accredited warehouses mustard seed stocks gained by 5558 tonnes to 10626 tonnes.

In the Alwar spot market in Rajasthan the price edged down by -16.25 rupee to 3818.75 rupees per 20 kgs.