Mustardseed yesterday traded with the positive node and settled 0.23% up at 3465 on short covering after prices dropped in the wake of strong production estimates along with sluggish demand of mustard meal in local mandies. As per latest report from United States Department of Agriculture (USDA ) , the total production of mustard seed in the current year is estimated at 67 lakh tonnes , up almost 2 lakh tonnes from the previous report, while the total consumption of mustard seed declined by 0.75 lakh tonnes to 68 lakh tonnes due to weak crushing demand. Moreover, sluggish export demand of mustard meal also added some selling in mustard seed market. As per latest data compiled by Solvent Extractors' Association of India, the total exports of oilmeals during the April- December 2012 were reported at 5.61 tonnes, down 44.15% from the last year in the same period. In the Sri Ganganagar spot market in Rajasthan the price edged up by 90 rupee to 4300 rupees per 20 kgs. In yesterday's trading session Mustardseed has touched the low of 3462 after opening at 3470, and finally settled at 3465. For today's session market is looking to take support at 3453.7, a break below could see a test of 3442.3 and where as resistance is now likely to be seen at 3484.7, a move above could see prices testing 3504.3.

Trading Ideas:

RM Seed trading range for the day is 3442-3504.

Mustard seed gains on short covering after prices dropped in the wake of strong production estimates.

Total production of mustard seed in the current year is estimated at 67 lakh tonnes , up almost 2 lakh tonnes

NCDEX accredited warehouses mustard seed stocks gained by 1027 tonnes to 15341 tonnes.

In the Sri Ganganagar spot market in Rajasthan the price edged up by 90 rupee to 4300 rupees per 20 kgs.