Rmseed yesterday settled up 0.44% at 3448 on short covering tracking firm spot demand. Lack of strong demand and good Monsoon reports in Central India also weighed on prices. Satisfactory monsoon progress till date has discouraged the stockeist to buy aggressively. However it appears that it will soon start which will prevent any major fall in prices. According to COOIT', the total output of mustard seed in the country is seen at 71.50 lakh tonnes, up 12.70% on the year. The mustard seed arrivals are slipping in major mandies now as growers respond to the poor prices. Arrivals in physical markets are gradually improving which may also not allow prices to see any sharp upside movement. The Industry estimated 71.5 Lakh tons of RMseed production this year. As per latest crop estimates by Solvent Extractors Association of India (SEA), the overall mustard seed crop is estimated to increase by almost 18% from the last year to 71.12 lakh tonnes in the current year due to strong production estimates in Rajasthan and Haryana. After a steep decline last year, mustard oil production is likely to rise 27% in India this year due to record mustard seed production in the ongoing rabi season. Mustard seed production has been pegged at 70 lakh tonne as against 55 lakh tonne in 2012. Better weather has boosted production in the current oil year (October 2012 to November 2013). In the Alwar spot market in Rajasthan the price gained 2.6 rupee to 3458.1 rupees per 20kgs. Now Rmseed is getting support at 3422 and below same could see a test of 3396 level, And resistance is now likely to be seen at 3473, a move above could see prices testing 3498.

Trading Ideas:

Rmseed trading range for the day is 3397-3499.

Mustard seed ended with gains on short covering tracking firm spot demand.

Satisfactory monsoon progress till date has discouraged the stockeist to buy aggressively.

NCDEX accredited warehouses mustard seed stocks gained by 835 tonnes to 96006 tonnes.

In the Alwar spot market in Rajasthan the price gained 2.6 rupee to 3458.1 rupees per 20kgs.