Mustardseed yesterday traded with the positive node and settled 0.63% up at 4023 on weak arrivals from the fresh crop amid firm spot demand. The 3rd Advance Estimates of Crop Production for 2011-12 released on Monday by Ministry of Agriculture which shows production estimates of rape/mustard seed of 6.96 million tonnes which is much higher as compared to COOIT’s figure of 6.03 million tonnes. 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. Traders mentioned that major producing states of the mustard seed have reported poor arrivals due to restricted selling by cultivators. The total arrivals of mustard seed decreased by 20,000 bags at 1.90 lakh bags in major mandies. Moreover, strong export demand of mustard seed meal also encouraged the mustard seed prices in all markets. The latest report of SEA OF India mentioned that India reported the total export of around 11.71 lakh tonnes of mustard seed oil cake during the April to March 2011-12, up 26.12% from the last year in the same period. In the Sri Ganganagar spot market in Rajasthan the price edged down by -7.5 rupee to 3867.5 rupees per 20 kgs. In yesterday's trading session Mustardseed has touched the low of 4005 after opening at 4015, and finally settled at 4023. For today's session market is looking to take support at 4002.3, a break below could see a test of 3981.7 and where as resistance is now likely to be seen at 4046.3, a move above could see prices testing 4069.7.

Trading Ideas:

RM Seed  trading range for the day is 3984-4072.

Mustard seed rose on weak arrivals from the fresh crop amid firm spot demand

Strong export demand of mustard seed meal also encouraged the mustard seed prices in all markets.

NCDEX accredited warehouses mustard seed stocks gained by 1560 tonnes to 95606 tonnes.

In the Alwar spot market in Rajasthan the price edged down by -7.5 rupee to 3867.5 rupees per 20 kgs.