Mustardseed yesterday traded with the negative node and settled -1.34% down at 3910 on concerns top producer Rajasthan state may impose stock limits for traders. Till date, supply-demand fundamentals have remained in favor of bulls due to less production and aggressive buying by the stockiest. 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. Further the export and domestic prices of Mustard DOC and soy DOC have seen significant increment due to good demand. However, worried over the very high prices of oilseeds complex, the Exchange has taken various steps to reduce the excessive speculative activities. The total arrivals of mustard seed decreased by 10,000 bags at 1.85 lakh bags in major mandies. In the Sri Ganganagar spot market in Rajasthan the price edged down by -50 rupee to 3850 rupees per 20 kgs. In yesterday's trading session Mustardseed has touched the low of 3908 after opening at 3955, and finally settled at 3910. For today's session market is looking to take support at 3887.3, a break below could see a test of 3864.7 and where as resistance is now likely to be seen at 3953.3, a move above could see prices testing 3996.7.

Trading Ideas:

RM Seed  trading range for the day is 3865-3997.

Mustard seed declined on concerns top producer Rajasthan state may impose stock limits for traders

Country's rapeseed output is estimated to drop by 12.6% to 6.03 mln tns in year to June 2012

NCDEX accredited warehouses mustard seed stocks gained by 1362 tonnes to 90843 tonnes.

In the Alwar spot market in Rajasthan the price edged down by -50 rupee to 3850 rupees per 20 kgs.