RM Seed futures in NCDEX ended lower due to profit booking and on panic selling on account of the news of the parliamentary committee suggesting India should discourage futures trading in agriculture commodities to contain speculative trading, resulting in an artificial rise in prices. Weakness in the spot market also added to downside pressure on the prices. However, rising production across the country continue to put pressure on RM Seed prices. Arrivals in mandis were slightly higher compared to last week. South West monsoon-induced expectation of increased crop in the coming season also weighs on the prices. In fact, pressure was there on vegetable oil as international crude oil prices have come down substantially. RM seed was quoted at Rs 646.90 in Jaipur, Rajasthan.

Influencing Factors: RM Seed

Lower demand in spot market
Stockiest selling
Profit booking in higher Levels
Panic selling on due to parliamentary panel suggested curbs on futures trading in agriculture commodities
Price movement in other edible oil complex
Raising Production across the country
The government has banned export of edible oil for one year to check rising domestic prices and control inflation. The ban will be in place till March 16, 2009.
The country's total oilseeds production in the year ending September 2009 is forecasted at 36 million tonnes, up 6 percent from the year ending September 2008.

Technical Outlook

Technically RM Seed Sep closed below 9 day EMA and 21 day EMA.

Today’s Recommendation

NCDEX RM Seed Sep sell 644-46 SL above 651 targets 640.20, 636,631.20