Mustard Seed on NCDEX settled up by 0.65% at 3896 tracking firmness in spot demand and overseas prices after prices remained under pressure on oversullply woes. Good weather and increase in minimum support prices (MSP), which attracted farmers to plant higher mustard, resulted into record crop of over 71.09 lakh tonnes, says industry body Solvent Extractors Association. Rapeseed-Mustard is the main oilseed crop for the Rabi season which is planted on more than 80% area covered under oilseeds. Rajasthan, Uttar Pradesh, Madhya Pradesh, Haryana and Gujarat are the highest sown states of mustard seed accounting for more than 70% of total mustard acreage in the country. This year due to fairly good distribution of rainfall during monsoon season 2016 has resulted substantial surface water storage to serve irrigation requirement of rabi crops. The acreage under rapeseed-mustard has increased because of favourable weather conditions and adequate soil moisture. Moreover, increase in minimum support prices (MSP) too attracts farmers to plant higher mustard crop, resulted into record crop of over 71.09 lakh tonnes. The rapeseed harvest in the EU, the world's top grower, will bounce back this year, US officials said, adding support to a growing consensus on rising production. The US Department of Agriculture's bureau in Vienna forecast EU rapeseed production to rise by 600,000 tonnes year-on-year, to 21.0m tonnes, thanks to rising yields. In Alwar spot market in Rajasthan the prices gained 51.5 Rupees to end at 3819 Rupees per 100 kg.Technically market is under fresh buying as market has witnessed gain in open interest by 2.26% to settled at 68630 while prices up 25 rupees, now Rmseed is getting support at 3875 and below same could see a test of 3855 level, And resistance is now likely to be seen at 3908, a move above could see prices testing 3921.

Trading Ideas:

Rmseed trading range for the day is 3855-3921.

Mustard seed prices gained tracking firmness in spot demand and overseas prices after prices remained under pressure on oversullply woes.

Good weather and increase in MSP, which attracted farmers to plant higher mustard, resulted into record crop of over 71.09 lakh tonnes.

NCDEX accredited warehouses mustard seed stocks gained by 1351 tonnes to 11031 tonnes.

In Alwar spot market in Rajasthan the prices gained 51.5 Rupees to end at 3819 Rupees per 100 kg.