Mustardseed yesterday traded with the positive node and settled 0.86% up at 3535 on lower-level buying amid weak spot demand though as rising rapeseed supplies from the new season crop limited the upside. As per the latest USDA report, China rapeseed production is projected at 13.5 million tons, up 0.9 million based on increased area and yield indicated in recently released official government statistics. 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). India is the fourth largest producer of mustard seed with a market share of around 12%. Rajasthan, Uttar Pradesh, Haryana, Gujarat and Madhya Pradesh are the major mustard seed-producing states. 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.  The total arrivals of new mustard seed were reported at 6.10 lakh bags , down 10 thousand bags from the last day. In the Alwar spot market in Rajasthan the price edged down by -12.85 rupee to 3468.4 rupees per 20 kgs. In yesterday's trading session Mustardseed has touched the low of 3489 after opening at 3509, and finally settled at 3535. For today's session market is looking to take support at 3500.3, a break below could see a test of 3465.7 and where as resistance is now likely to be seen at 3558.3, a move above could see prices testing 3581.7.

Trading Ideas:

RM Seed  trading range for the day is 3466-3582.

Mustardseed gained on lower-level buying amid weak spot demand though as rising rapeseed supplies from new season crop limited upside.

China rapeseed production is projected at 13.5 million tons, up 0.9 million based on increased area.

NCDEX accredited warehouses mustard seed stocks gained by 2664 tonnes to 17313 tonnes.

In the Alwar spot market in Rajasthan the price edged down by -12.85 rupee to 3468.4 rupees per 20 kgs.