Mustardseed yesterday traded with the positive node and settled 1.7% up at 4177 on firm demand for crushing and on tracking firm trend in the soy complex. Due to a sharp rise in the Soybean and thereby Soymeal prices, the demand for mustard meal has increased in the past few days while supplies continue to remain tight. As per COOIT, Rapeseed output is estimated to drop by 12.6% to 6.03 mln tons in the year to June 2012. Rains have not been enough in many areas of the country which is a cause of concern and further delay may spark the edible oil prices including RMseed. In Canada the canola sowing is going up on higher oilseeds prices. During past few days traders have built up fresh positions in the market anticipating the further rise in prices in coming days. The total arrivals of mustard seed decreased by 3000 bags to 78000 bags in major mandies. In the Sri Ganganagar spot market in Rajasthan the price edged up by 110 rupee to 4092.3 rupees per 20 kgs. In yesterday's trading session Mustardseed has touched the low of 4117 after opening at 4117, and finally settled at 4177. For today's session market is looking to take support at 4132.3, a break below could see a test of 4087.7 and where as resistance is now likely to be seen at 4206.3, a move above could see prices testing 4235.7.

Trading Ideas:

RM Seed trading range for the day is 4088-4236.

Mustard seed gained on firm demand for crushing and on tracking firm trend in the soy complex

Due to a sharp rise in the Soybean and thereby Soymeal prices, the demand for mustard has increased

NCDEX accredited warehouses mustard seed stocks gained by 222 tonnes to 128968 tonnes.

In the Sri Ganganagar spot market in Rajasthan the price edged up by 110 rupee to 4092.3 rupees per 20 kgs.