Mustardseed yesterday traded with the positive node and settled 0.24% up at 3701 on short covering by the traders due to falling arrivals from the producing regions. As per 3rd Advance Estimates of Crop Production for 2011-12 released 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. A lot will depend upon the monsoon progresses in India. Because it is one of the most important factors which will determine the India’s Kharif oilseeds production. Thus long term traders will have to wait for just 10 days to rightly judge the monsoon progress and then bet on the long term outlook. 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. The total arrivals of mustard seed increased by 3000 bags at 1.18 lakh bags in major mandies. In the Sri Ganganagar spot market in Rajasthan the price edged up by 55 rupee to 3715 rupees per 20 kgs. In yesterday's trading session Mustardseed has touched the low of 3697 after opening at 3700, and finally settled at 3701. For today's session market is looking to take support at 3692.7, a break below could see a test of 3684.3 and where as resistance is now likely to be seen at 3713.7, a move above could see prices testing 3726.3.

Trading Ideas:

RM Seed  trading range for the day is 3685-3727.

Mustard seed rose on short covering by the traders due to falling arrivals from the producing regions.

Estimates of mustard seed of 6.96 mln tns which is much higher as compared to COOIT’s figure of 6.03 mln tns.

NCDEX accredited warehouses mustard seed stocks dropped by 757 tonnes to 131945 tonnes.

In the Alwar spot market in Rajasthan the price edged up by 55 rupee to 3715 rupees per 20 kgs.