Rmseed settled up 0.18% at 3294 tracking firmness in spot demand amid short covering despite of prospects of higher rapeseed production in India and conducive weather. Higher mustard seed production would lead to increase in mustard oil output, which is indeed good news since India depends on edible oil imports to meet its requirement as there is a huge gap between demand and supply. The market sources suggest that the total production of mustard seed in the current year is estimated at 77.32 lakh tonnes against 73.04 lakh tonnes of the previous year on the account of higher sowing acreage in major producing states along with strong yield rates due to better crop conditions. The total production of mustardseed crop of the state is estimated at 37.82 lakh tonnes, up 9.80% from the last year due to favouarble temperature along with adequate facilities of irrigation across all the districts. Similarly, the total production in Gujarat is also estimated at 4.19 lakh tonnes, up 43.12% from the last year. The prices were also dented by higher stocks in local mandies. The total carryover stocks of mustard seed in local mandies have been reported at 12-14 lakh tonnes, up 40% from the last year due to strong production in the previous year along with limited crushing of mustard seed at higher levels. Technically market is under fresh buying as market has witnessed gain in open interest by 5.1% to settled at 60000 while prices up 6 rupee, now Rmseed is getting support at 3280 and below same could see a test of 3267 level, And resistance is now likely to be seen at 3308, a move above could see prices testing 3323.

Trading Ideas:

Rmseed trading range for the day is 3268-3324.

Mustard seed ended with gains tracking firmness in spot demand amid short covering despite of prospects of higher rapeseed production

Similarly, the total production in Gujarat is estimated at 4.19 lakh tonnes, up 43.12% from the last year.

NCDEX accredited warehouses mustard seed stocks dropped by 1714 tonnes to 4128 tonnes.

In the Alwar spot market in Rajasthan the price remains unchanged at0 rupee to 3378.25 rupees per 20kgs.