Boiling News & Veg Oils ,crude

Oilseeds up on demand, heavy rains
15 Jul 2008 11:06 am

Mumbai – Indian vegetable oilseed futures were trading positively tracking the current recovery in the global edible oil markets. Fresh buying is being seen locally as prices corrected to comfortable levels yesterday. Reports of water-logging in some market yards in Madhya Pradesh amid limited arrivals and good demand to meet festival requirements are also supporting the positive tone.



The Malaysian palm oil futures has ended the morning session marginally up, erasing most of the early losses induced by poor July 1-15 exports and weakness in soy oil. The US soy complex closed down overnight due to favourable weather in US soy tracts. However, it has recovered currently with August soy oil and August soybean quoting mixed by [-] 10 points and [+] 4.50 cents on e-CBOT.



The Indian oilseed market is trading positively on fresh buying after yesterday’s strong correction. The current recovery in the global markets is also supporting the trend. Though, the US soy markets closed down overnight, the losses were already factored in yesterday’s trading in the Indian markets.



The physical markets are supportive on account of limited arrivals and lack of selling interest. Heavy rains have led to flooding in some of the marketing yards in Madhya Pradesh, which too is supporting the positive tone. The sowing of soybean in Madhya Pradesh is almost complete, with more than 80% of the areas covered. Though, rains are continuing players are not expecting any damage to the growing soybean plants as it is a hardy crop. However, some damage to other standing crops are feared.



The demand is also good at current levels as the market is expecting good festival demand from August. The arrivals of soybean are just around 25,000 – 30,000 bags and most of the requirement for edible oils would have to be met from imported oil and mustard oil.



The August soybean contract at National Commodity Derivatives Exchange [NCDEX] at 10.45 hours is trading higher at Rs. 2,733.50 [+ 28.50] per 100 kg with 19,440 tonnes traded. The August contract at National Board of Trade [NBOT] is up at Rs. 2,736.00 [+ 30.50] per 100 kg.



August CPO at Multi Commodity Exchange of India is up at Rs. 509.10 [+ 2.10] per 10 kg with 170 tonnes traded.



Crude Palm Oil [CPO] at the Bursa Malaysia Derivatives [BMD] has ended the morning session marginally positively with fresh buying, pulling the market up from early lows. The poor exports and overnight losses in US soy had pushed the market down, before the late recovery.



Malaysia’s palm oil exports during the July 1-15 period are estimated at a 6-month low of 515,266 tonne, down 7.8% on month by cargo surveyor Intertek Agri Services. The estimate is line with market expectations of around 515,000 tonnes.



The benchmark September contract has ended the session up at MYR 3,530.00 [+ 6.00] a tonne with 2,480 lots traded. [MYR=Malaysian Ringitt][1 lot=25 tonnes]



The US soy complex closed lower on Monday as profit-booking was seen due to favourable weather outlook for the US soy tracts. The absence of any other positive cues also supported the booking of profits.



August soybeans settled 33 1/2 cents lower at $15.82 and November soybeans ended 37 cents lower at $15.59. The spot month July futures quietly expired 35 1/2 cents lower at $15.95. December soymeal settled $12.90 lower at $415.20 per short ton. December soy oil finished 82 points lower at 65.20 cents per pound.



MUSTARD SEED



Mustard seed futures is trading higher tracking the gains in domestic soy complex and the modest recovery in the global edible oil markets. The firm demand for seed to meet festival requirement of mustard oil has been keeping the underlying sentiments positive, despite market corrections in between. The reports of floods in some parts of Madhya Pradesh are also supporting the speculative buying.



Most active mustard seed September futures on NCDEX is trading higher at Rs. 679.10 [+ 4.25] per 20 kg with 25,140 tonnes traded.



The regional markets are up with August contract at Sirsa and Hapur quoting at Rs. 571.60 [+ 2.60] and Rs.678.10 [+ 2.50] per 100 kg.



CASTOR SEED



Castor seed futures is trading higher in thin trading with the strong bullish sentiments in the market persisting on account of the lack of good rains in the major castor tracts in Gujarat, Andhra Pradesh and Rajasthan. The uncertainty regarding the new crop arrivals, good demand amid negligible current arrivals and improvement in global quotes of castor oil are keeping the sentiments bullish in the market. However, some correction is expected as the market is currently in an over-bought situation.



Castor seed August contract at NCDEX is trading higher at Rs. 625.60 [+ 2.70] per 20 kg with 20 tonnes traded.

Mumbai edible oil prices - July 15
15 Jul 2008 10:17 am



Mumbai - Following are the prices of various edible oils at the Mumbai market as on 10.10 a.m. (IST). All prices are in Rs. per 10kg.Excluding Value added Tax (VAT) Variety/Day
14/07/08 15/07/08 Change
Sunflower oil Exp
660 660 -
oil Ref
720 720 -
Groundnut oil
725 725 -
RBD Palmolein
574 573 -1
Cottonseed oil ref
672 668 -4
Mustard oil
694 692 -2
Ref Soy oil
668 668 -

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Veg oil plants rates
15 Jul 2008 11:22 am



Mumbai, July 15 - Following are the prices of Palmolein & Soy Rf oils at the Mumbai plants as on 11.00 a.m. (IST). All prices are in Rs. per 10kg.Excluding Value added Tax (VAT)

Plant/Variety
Palmolein
Soy Rf

Liberty
572 (July)
NA

Ruchi
573 (July)
669 (July)

Spot Mustard oil prices - July 15
15 Jul 2008 1:23 pm

Mumbai - Following are Mustard expeller oil prices of various markets in India at morning session. Prices are in Rs. per 10kg, Excluding Value added Tax (VAT).*indicate all paid rates.

Mustard Oil 15/07/08 14/07/08
Min Max Min Max
Mumbai 692 693 694 695
Alwar 665 670 660 661
Bharatpur 665 670 660 661
Bikaner 665 666 668 669
Bundi 660 665 655 656
Charkhi Dadri 686 687 685 686
*Delhi 695 696 695 696
Haldiya port 765 766 760 761
Jaipur 673 674 677 678
Kanpur 705 706 705 706
Kota 668 669 672 673
Ludhiyana 692 693 688 689
Sriganganagar 675 676 678 680

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Madhya Pradesh soybean plant rates - July 15
15 Jul 2008 1:26 pm



Mumbai - Following are the rates offered by soybean plants in Maharashtra today.

Plant
Place
Rates

Laxmi solvex
Dewas
2750

Premier
Dewas
2740

Divya Jyoti
Narsinghpur
2750

Kirti
Dewas
2740

Ruchi Soya
Indore
2750

Prestige
Indore
2740

Prakash Solvex
Indore
2720

Adani
narsing
2740

Kargil
Indore
2750

Kastra/kirti
Dewas
2740

Gujarat Ambuja
Pritampur
2730

Khetan
Ratlam
2760

Dhanlaxmi
Shajapur
2750
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Oilseeds fall on global cues, oil
16 Jul 2008 10:46 am




Mumbai – Indian vegetable oilseed futures were trading sharply down driven by the huge overnight losses in the US soy market and crude oil. Weakness is being seen in Malaysian palm oil too currently. However, the deficient rainfall in many parts of the country and current recovery in the US soy market are limiting the losses.



The Malaysian palm oil futures has ended the morning session sharply down affected by the huge overnight losses in US soy oil, crude and weak cash markets. The US soy complex closed sharply down overnight on speculative selling, favourable weather and plunge in crude oil. However, some recovery is being seen currently with August soy oil and August soybean quoting higher by 32 points and 11.00 cents on e-CBOT.



The energy markets plunged overnight, with August crude oil settling down by $6.44, or 4.4% at $138.74 a barrel on the New York Mercantile Exchange, dropping the most in dollar terms since 1991.



The Indian oilseed markets are trading sharply down affected by the huge overnight losses in US soy complex and crude. With the global markets moving down, profit booking of all the gains made yesterday is being seen in the Indian markets, despite supply tightness and weather problems in the country.



At the same time, the deficient rainfall and lack-lustre sowing in parts of Maharashtra, the country's second largest oilseed producer are limiting the losses. The sowing of other oilseeds like groundnut, sunflower is also reported to be lagging in Karnataka and Andhra Pradesh. Farmers in Maharashtra and Gujarat are also reported to be worried over the germinated seeds getting destroyed due to insufficient second phase of rainfall.



However, the overall sowing picture of soybean is bright with acreage covered reported to be ahead of previous year’s by 25% on account of the normal rains in Madhya Pradesh, which is the largest soybean growing state in India. The sowing of soybean in Madhya Pradesh is expected to be largely completed by this week.



The August soybean contract at National Commodity Derivatives Exchange [NCDEX] at 10.35 hours is trading lower at Rs. 2,711.00 [- 21.50] per 100 kg with 12,910 tonnes traded. The August contract at National Board of Trade [NBOT] is down at Rs. 2,711.00 [- 21.00] per 100 kg.



August CPO at Multi Commodity Exchange of India is trading lower at Rs. 508.20 [- 2.00] per 10 kg with 270 tonnes traded.



Crude Palm Oil [CPO] at the Bursa Malaysia Derivatives [BMD] has ended the morning session down affected by the huge overnight sell-off in US soy oil and crude oil. The dull export demand and record inventories are also supporting the selling in palm oil. However, the current gains in US soy oil are putting a cap on the losses.



The benchmark October contract has ended the session lower at MYR 3,510.00 [- 50.00] a tonne with 6,153 lots traded. [MYR=Malaysian Ringitt][1 lot=25 tonnes]



The US soy complex closed sharply down on Tuesday extending Monday’s losses. The huge selling in crude oil, favourable warm, wet weather for growing crops and lack of any bullish news led to the heavy selling. Technical selling too picked up later, which pushed the active near-by contracts to one-week lows.



August soybeans settled 40 cents lower at $15.42 and November soybeans ended 43 cents lower at $15.16. December soymeal settled $13.90 lower at $401.30 per short ton. December soy oil finished 76 points lower at 64.44 cents per pound.



MUSTARD SEED



Mustard seed futures is trading sharply down tracking the heavy losses in domestic soybean, global edible oil and crude oil markets. With the rapeseed season almost over, the market is largely tracking the movements in the soybean markets. However, the underlying demand continues to be strong as heavy crushing is being seen to meet the festival requirement of mustard oil in August.



The absence of rains and delay in sowing of oilseeds in select regions of Maharashtra, Andhra Pradesh and Karnataka are also limiting the losses. The farmers in Gujarat too are reported to be worried over the growing groundnut crops.



Most active mustard seed September futures on NCDEX is trading lower at Rs. 679.05 [- 4.45] per 20 kg with 19,860 tonnes traded.



The regional markets are down with August contract at Sirsa and Hapur quoting at Rs. 571.60 [- 1.70] and Rs.629.80 [- 0.30] per 100 kg.



CASTOR SEED



Castor seed futures is trading down with profit-booking of yesterday’s limit-up gains being seen. The huge overnight losses in crude oil and current losses in edible oilseed markets have prompted to players to book profits after the prices closed at a new all-time high yesterday.



However, the sentiments continue to be bullish on account of the absence of rains and lagging sowing of castor seed in Gujarat, Andhra Pradesh and Rajasthan. Players are expecting the next crop to be smaller and delayed due to the unfavourable weather.



Castor seed August contract at NCDEX is trading lower at Rs. 641.00 [- 6.20] per 20 kg with 160 tonnes traded.

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Spot Soya oil prices - July 16
16 Jul 2008 12:51 pm



Mumbai - Following are soy oil prices of various markets in India at morning session. Prices are in Rs. per 10kg, Excluding Value added Tax (VAT).*indicate all paid rates.

Soy oil 16/07/08 15/07/08
Min Max Min Max
Mumbai 668 669 668 669
Indore 663 664 663 664
*Akola 695 696 695 696
Alwar 675 676 678 680
*Amravati 693 694 695 696
Bharatpur 675 676 678 680
Bundi 670 671 672 673
Chennai 670 671 675 676
*Kolkata 707 708 707 708
Hyderabad 685 686 700 701
*Jalana 688 689 691 692
Kakinada 680 681 680 681
Kandla 670 671 675 676
*Kanpur 709 710 709 710
*Latur 685 686 685 686
Manglore 670 671 665 666
*Nagpur 701 713 700 715
*Nandad 688 689 685 686
Rajkot 657 658 652 655
*Solapur 684 685 688 689

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Spot Groundnut oil prices - July 16
16 Jul 2008 12:48 pm



Mumbai - Following are groundnut oil prices of various markets in India at morning session. All prices are in Rs. per 10kg, Excluding Value added Tax (VAT).

Groundnut oil 16/07/08 15/07/08
Min Max Min Max
Mumbai 725 726 725 726
Rajkot 700 715 700 720
Hyderabad 710 711 715 716
Ahemdabad 710 715 710 715
Chennai 670 671 665 666
Kurnool 695 696 695 696
Narsarropeth 680 681 690 691
Prodattour 685 686 685 686
Bikaner 665 666 665 666

Correction expected in soybean
16 Jul 2008 3:38 pm

Mumbai - Soybean in the last three weeks remains range bound and rally is seems to be taken a breath. The price in the last 2 weeks hovering around Rs 2720 per quintal in the domestic market. The area sown in soybean in the present Kharif season is higher by 2.8 lakh ha at 24.82 lakh ha compared to last year. The deficient rainfall in parts of Maharashtra, the country’s second largest oilseed producer raises concerns on the production estimates.



Soybean outlook in US, the largest soybean producer looks bullish on lower crop production estimate. U.S. farmers intended to plant 74.8 million acres of soybeans in 2008 but are now estimated to have sown 74.5 million. However, updated USDA survey data scaled back the harvested acreage estimate to 72.1 million acres from 73.8 million previously. Given a higher probability for shortened crop development, USDA trimmed its 2008 soybean yield projection to 41.6 bushels per acre from a trend-line of 42.1 bushels. The combined reductions this month for harvested acreage and yield cut the projected 2008 soybean output by 105 million bushels to 3 billion.



The market although is expected to witness downside correction despite strong fundamental on weak crude oil and firmness of dollar against major currencies. Favorable weather in US and India is also expected to pin the futures down. The price of vegetable oil and Crude oil is postively corelated and if the price of Crude oil hovering around $135 per barrel then it is likely to weigh down on seed prices.



The market remains range bound and closing below Rs 2687 the market is expected to retrace to 50 per cent of last 2 months rally. The market is expected to come down to Rs 2550-2500 per quintal although the market remains very bullish in the long terms. Completing the retracement the market is expected to move towards Rs 2900 per quintal.

Stocks advance as drop in oil prices eases some concern about jump in inflation

NEW YORK (AP) -- Wall Street turned higher Wednesday as another drop in oil prices helped offset concerns about a jump in inflation last month. The Dow Jones industrial average rose more than 150 points.
Stocks drew support from oil prices that pulled back for a second straight day on concerns that a slowing economy will curtail demand for fuel. Light, sweet crude fell $4.09 to $134.65 on the New York Mercantile Exchange, compounding a drop of $6.44 on Tuesday.

Meanwhile, bond prices fell sharply as investors retreated from the safety of government debt.

And a decision by Wells Fargo & Co. to boost its dividend countered some of the market's concerns about the health of banks. The San Francisco-based bank's move to raise its payout to investors is being seen as a bullish sign for the troubled banking sector. Still, the Labor Department's report that consumer prices shot up in June at the second fastest pace in 26 years is reminding investors that rising prices still pose a threat to economic growth.

Investors also remain worried about the economy and specifically the financial sector. This week has brought fresh attention to potential trouble spots in the mortgage market. Fannie Mae and Freddie Mac, the government-chartered mortgage financiers, remain a concern, as do regional banks that could have bad mortgage debt on their books.

But, for the moment, investors were pleased by the drop in oil.

Oilseeds trade up on short-covering
17 Jul 2008 10:43 am

Mumbai – Indian vegetable oilseed futures were trading higher Thursday amid short covering of yesterday’s losses supported by the huge overnight gains in the US soy complex. The deficient rainfall in many parts of the country and increase in demand in the cash markets are also supporting the gains.



The Malaysian palm oil futures has ended the morning session marginally down on weak demand, after trading higher initially for most of the session. The US soy complex closed sharply higher overnight, on technical buying and long-range weather concerns. However, mixed trading is being seen currently with August soy oil and August soybean quoting by [-] 9 points and [+] 5.75 cents on e-CBOT.



Though, crude oil tumbled overnight for the second successive session, it was ignored by US soy markets. August crude oil at the New York Mercantile Exchange, settled down overnight by $4.14 at $134.60 a barrel.



The Indian markets are trading higher on short-covering of yesterday’s losses, supported by the strong overnight recovery in the US soy markets. The good demand amid supply tightness in the cash markets ahead of the upcoming festival season is also supporting the gains.



Though, it has been largely factored into the prices, the deficient rainfall and lack-lustre sowing of oilseeds in parts of Maharashtra, Karnataka and Andhra Pradesh are still weighing on the market sentiments. At the same time, the overall sowing picture of soybean, continues to be bright on account of the normal rains in Madhya Pradesh. The sowing of soybean in Madhya Pradesh is expected to be largely completed by this week. A clearer picture regarding sowing is expected in tomorrow’s Weather Watch Report from the Ministry of Agriculture.



Idea that the steep fall seen yesterday over reports of a prospective ban on oilmeal exports went too far, is leading to fresh buying and short-covering of positions currently. Major sections of traders are confident that Government would not take such a decision that would harm the Indian soy industry, considering the limited domestic demand for soymeal, its stabilizing effect on soybean prices and huge tax revenue earned from soymeal exports.



The August soybean contract at National Commodity Derivatives Exchange [NCDEX] at 10.30 hours is trading higher at Rs. 2,728.00 [+ 30.50] per 100 kg with 19,980 tonnes traded. The August contract at National Board of Trade [NBOT] is up at Rs. 2,729.00 [+ 31.50] per 100 kg.



August CPO at Multi Commodity Exchange of India is marginally up at Rs. 506.80 [+ 0.30] per 10 kg with 660 tonnes traded.



Crude Palm Oil [CPO] at the Bursa Malaysia Derivatives [BMD] ended the morning session down, after trading positively for most of the session. While, huge overnight gains in US soy oil led to initial gains, the reduction of gains in soy oil in after-hours trading, overnight losses in crude oil and lackluster demand in the cash market forced the market to move down towards closing.



The benchmark October contract ended the session down at MYR 3,455.00 [- 11.00] a tonne with 4,485 lots traded. [MYR=Malaysian Ringitt][1 lot=25 tonnes]



The US soy complex closed sharply higher on Wednesday, bouncing back from previous two session’s losses on technical buying, short covering and concerns for long range weather outlooks. Forecasts for a hot and dry climate raised concerns for plants in the growth phase.



August soybeans settled 31 cents higher at $15.73 and November soybeans ended 32 cents higher at $15.48. December soymeal settled $8.40 lower at $409.70 per short ton. December soy oil finished 110 points higher at 65.54 cents per pound.



MUSTARD SEED



Mustard seed futures is trading positively on short-covering of yesterday’s losses tracking the recovery in domestic soybean and overnight strong gains in US soy markets. The strong underlying demand, the absence of rains and delay in sowing of oilseeds in select regions of Maharashtra, Andhra Pradesh and Karnataka are also supporting the gains. However, the weakness crude oil and losses in Malaysian palm oil are weighing on the market sentiments limiting the gains.



Most active mustard seed September futures on NCDEX is trading higher at Rs. 681.75 [+ 4.55] per 20 kg with 13,940 tonnes traded.



The regional markets are mixed with August contract at Sirsa and Hapur quoting at Rs. 570.80 [- 0.20] and Rs.629.70 [+ 0.30] per 100 kg.



CASTOR SEED



Castor seed futures is trading positively supported by good buying of castor oil by exporters, reports of enquiries for purchase from overseas countries and the lack of rains in the major castor seed bowls.



The time of sowing of castor seed in Andhra Pradesh is already over, with only negligible sowing being reported. The sowing of castor seed in Gujarat would commence from August. The poor rains in north-Gujarat have led to limited sowing of other crops and experts are expecting increase in castor seed acreage in this region if rains improve in August. This can lead to good supply from January, though the supply would be tight in November – December, when normally supplies from Andhra Pradesh are available.



Castor seed August contract at NCDEX is trading higher at Rs. 656.40 [+ 4.90] per 20 kg with 390 tonnes traded.

Mumbai edible oil prices - July 17
17 Jul 2008 10:15 am

Mumbai - Following are the prices of various edible oils at the Mumbai market as on 10.10 a.m. (IST). All prices are in Rs. per 10kg.Excluding Value added Tax (VAT) Variety/Day
16/07/08 17/07/08 Change
Sunflower oil Exp
665 665 -
oil Ref
720 720 -
Groundnut oil
725 725 -
RBD Palmolein
574 572 -2
Cottonseed oil ref
670 668 -2
Mustard oil
692 695 +3
Ref Soy oil
668 666 -2

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Soya Bean NCDEX Aug
17 Jul 2008 9:56 am

The trend has turned down.

Ideally, exit all earlier long positions at market price and on rise to Rs. 2706 – Rs. 2721 as the opportunity arises.

Support will be at Rs. 2687 – Rs. 2678.

Sell only on fall and close below Rs. 2678.

INTRA-DAY LEVELS

Last Close
Daily Closing Reversal

Point
Trend
Level 1
Level 2
Center Point
Level 3
Level 4

2695
2700

2664
2679
2706
2721
2748

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Mustard Seed NCDEX Sep
17 Jul 2008 9:54 am

The trend is up but the nature of the movement is sideways.

Ideally, book profits at higher levels to Rs. 678.80 – Rs. 681.50 or above as the opportunity arises.

Re-enter long only on rise and close above Rs. 684.85.

INTRA-DAY LEVELS

Last Close
Daily Closing Reversal

Point
Trend
Level 1
Level 2
Center Point
Level 3
Level 4

677.25
674.6

671.9
674.6
678.8
681.5
685.7

Oil markets: Bottoming out or taking a breather?
Thursday July 17, 5:12 pm ET
Oil and gas prices in extended fall: Traders seek clues of bottoming-out or a breather

NEW YORK -- Oil prices tumbled below $130 a barrel for the first time in more than a month Thursday, as crude's dramatic slide entered a third day accompanied by a sharp sell-off in natural gas.
The declines accelerated amid growing concerns that the weakening economy and creeping inflation are eroding demand for fossil fuels in the U.S. and other large energy-consuming nations.

Oil is now more than 10 percent cheaper per barrel than it was on Monday; natural gas prices are down more than 20 percent just since the Fourth of July. Still, experts are not convinced that prices have turned a corner.

"There's no bell that tells you when the market has turned," said James Cordier, president of Tampa, Fla.-based trading firms Liberty Trading Group and OptionSellers.com.

Light, sweet crude for August delivery dropped $5.31 to settle at $129.29 a barrel on the New York Mercantile Exchange. Prices have fallen nearly $16 in just the past three days.

Natural gas futures for August delivery fell more than 8 percent Thursday, marking their biggest one-day drop in nearly a year, according to Nathan Golz, researcher at Wachovia Securities in St. Louis. Prices for the key heating, cooking and power generation fuel settled 86.1 cents lower at $10.537, their lowest point since April.

A number of market observers say there simply wasn't enough support for the recent run up in natural gas prices, and that this week's sell-off of oil has only helped speed the declines.

"Any time oil goes up or down on Nymex, it's going to have a carry-over effect on natural gas," said Michael Rieke, senior managing editor for power and gas at energy research firm Platts.

The immediate cause of Thursday's sharp natural gas decline was a larger-than-expected increase of U.S. supplies.

The Energy Department's Energy Information Administration said in its weekly report that natural gas inventories rose by 104 billion cubic feet to more than 2.31 trillion last week. Analysts had been expecting supplies to grow by only 86 billion to 91 billion cubic feet, according to a Platts survey.

A similar report Wednesday showed oil, gasoline and other fuel supplies unexpectedly rose sharply. Traders saw both the petroleum and natural gas reports as reasons to sell, as they reinforce data that show consumers are cutting back on their energy use.

"We're seeing some worries about demand destruction in oil, so I think that's creating some fear among investors and leading them to sell," said Tom Pawlicki, commodities analyst with MF Global Research in Chicago.

Some market observers have said last Friday's record above $147 a barrel could represent a peak price for oil, at least for the time being. But like a number of others, Pawlicki was reluctant to say whether the market's latest swoon represented a lasting shift.

"I think it's too early to call a top to this market," Pawlicki said.

Crude's drop weighed heavily on other commodities Thursday, with gold, silver, soybeans, corn and other agriculture futures all ending sharply lower.

Stocks rallied for the second day. That fueled speculation among some analysts that large investors are pulling money out of oil and other commodities -- which had been seen as safe havens given the financial turmoil of the past year -- and pumping it back into the beaten-down stock market.

Reports of a pre-dawn explosion that damaged an oil pipeline in Nigeria's restive south -- the sort of threat to supply that has helped fuel crude's recent rally -- did little to prop up prices Thursday.

A Nigerian military official said the blast on a pipeline owned by Agip, a subsidiary of the Italian energy giant Eni SpA, "affected output," although he did not say by how much.

Col. Chris Musa, head of the Bayelsa State military, also did not say how severe the damage was, and declined to comment on what might have caused the explosion. The company said a sudden drop in pressure led it to halt production on pipelines carrying 47,000 barrels of oil a day.

Attacks on oil industry infrastructure in the past two years have slashed oil output by almost a quarter in Nigeria, Africa's top crude producer.

At the gas pump, prices held steady at a record $4.114 a gallon, according to auto club AAA, the Oil Price Information Service and Wright Express. Diesel rose to a new record of $4.845, up more than half a penny.

In other Nymex trade, heating oil fell 9.72 cents to settle at $3.7438 a gallon, while gasoline futures fell 11.61 cents to settle at $3.1633.

Brent crude for September delivery fell $5.12 to settle at $131.07 on the ICE Futures Exchange in London.

India: Scant rains hit oilseeds crop
17 Jul 2008 19:16 pm

Singapore - The sowing of oilseeds in the four key Indian states of Andhra Pradesh, Karnataka, Maharashtra and Madhya Pradesh have been affected by scant rains during this year's monsoon, B V Mehta, executive director of the Solvent Extractors' Association of India, said Thursday.

He said if rains don't improve in the next 7-10 days, the oilseeds yield may be impacted in these areas.

"Even for areas where oilseeds crops have already been planted, if rains continue to remain scant, farmers may have to replant their crops, which will delay harvesting," said Mehta. He added the picture of India's overall oilseeds acreage will become clear in the next 10 days, as oilseeds sowing usually concludes in July.
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Low rainfall weighs on crop sowing
17 Jul 2008 18:09 pm

Mumbai - India's monsoon rains continue to deteriorate in the southern and central parts of the country, raising concerns over planting of the summer-sown crop, which is currently underway.

Although rains in the country during the June 1-July 15 period were 6 per cent above normal, they were lower than the 10 per cent above normal levels during the June 1-July 9 period, according to data released Thursday by the India Meteorological Department.

During the week ended July 15, rain was particularly deficient in peninsular India, hampering the sowing of crops.

The IMD has projected subdued rains in the next seven days in central, western and southern India, specially in the states of Maharashtra, Andhra Pradesh and Rajasthan.

Maharashtra, a major producer of soybean, cotton and sugarcane, has been feeling the pinch of deficit rains and has reported lower sowing in the major crops.

As of July 13, sugarcane sowing is down 74 per cent on year in the state, while soybean planting is down 39.5 per cent. Cotton planting has also fallen 46 per cent in the state, government data showed.

According to Rajesh Agrawal, former chairman of the Soybean Processors Association of India, the soybean crop needs more rain in the next 7-10 days as farmers in Maharashtra are waiting for rain to complete their sowing.

In Madhya Pradesh, the biggest soybean growing state, sowing is largely over, but Agrawal said more rain is needed in the next 10 days for the development of the planted crop.

"It's too early to forecast if there will be any impact on yield or output due to low rain, but there's no doubt that more rain is urgently needed for India's soybean crop," he said.

Concerns over low rainfall are also weighing over cotton sowing in the country, a senior official with a leading cotton trading body said.

"Sowing will continue till early August, and the picture will be much clearer then. However, good rains are required in the next two weeks to ensure that sowing progresses well," said the official, declining to be named.

Currently, cotton sowing in the country is down 38 per cent on year at 3.92 million hectares.

However, the low rains will only delay the arrival of the new corn crop without affecting area under cultivation much, said Amol Sheth, president of the All India Starch Manufacturers Association.

As of July 11, corn, which is mainly grown in Andhra Pradesh and Maharashtra, was planted on 3.37 million hectares countrywide, up from 3.10 million hectares a year ago.

However, the northern plains and the northeastern region received good rains during the week due to the shifting of the monsoon trough toward the foothills of the Himalayas, the weather body said.