Mustardseed yesterday traded with the positive node and settled 0.24% up at 3742 on some short covering and estimated drop in rapeseed production was also supporting sentiments. India's rapeseed output is estimated to drop 12.6 percent to 6.03 million tonnes in the year to June 2012. 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. Moreover, poor crushing margins of more than Rs 20-25 per quintal also reduced the miller’s offtake at physical markets. On the supply side, arrivals were also remained sluggish at major mandies due to poor production estimates of the current year. Some of the traders are still believe that Indian mustard seed production is likely to be much lower at 52 lakh tonnes against 68 lakh tonnes that were reported by SEA of India. 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 around 23 lakh tonnes reported in March and April while around 6 lakh tonnes reported that were reported in May. In the Sri Ganganagar spot market in Rajasthan the price edged down by -37.5 rupee to 3680 rupees per 20 kgs. In yesterday's trading session Mustardseed has touched the low of 3702 after opening at 3736, and finally settled at 3742. For today's session market is looking to take support at 3711.7, a break below could see a test of 3681.3 and where as resistance is now likely to be seen at 3762.7, a move above could see prices testing 3783.3.

Trading Ideas:

RM Seed  trading range for the day is 3681-3783.

Mustardseed gained on some short covering and estimated drop in rapeseed production was also supporting sentiments

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

NCDEX accredited warehouses mustard seed stocks gained by 2656 tonnes to 130983 tonnes.

In the Alwar spot market in Rajasthan the price edged down by -37.5 rupee to 3680 rupees per 20 kgs.