MUMBAI (Commodity Online): RMseed prices recovered on Wednesday due to overall recovery in oilseeds prices in the line with international markets.

Recently heavy rains were seen in North India which affected market arrivals adversely. Thus market witnessed some improvement.

Further it is also true that prices have fallen considerable and now traders are avoiding heavy selling on current levels. Rather they prefer to make buy positions on dips.

Demand in the physical markets is expected to improve gradually. 4th advanced estimates of Indian government pegs RMseed production for the year 2009-10 at 6.41 MMT as compared to the 7.20 MMT during 2008-09.

Long term investors can start creating fresh buy positions. We expect that rabi season crops would also remain good as monsoon rains have provided enough soil moisture. The sown area may also increase in RMseed.

Courtesy: Religare Commodities

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