Boiling News & Veg Oils ,crude

Oilseeds slightly up on short-covering
24 Jul 2008 11:34 am

Mumbai – Indian vegetable oilseed futures were trading moderately up on short-covering of yesterday’s losses supported by the current recovery in the global edible oil markets. However, the dull spot markets, losses in crude oil, overall bearishness in global edible oil markets, showers and forecasts for rains in main oilseed growing tracts are limiting the gains in the market.



The Malaysian palm oil futures has ended the morning session higher on short-covering of yesterday’s heavy losses, tracking the current recovery in US soy oil. The US soy complex closed down overnight on favourable weather outlooks and losses in crude oil. However, it is quoting higher currently with August soy oil and August soybean quoting up by 21 points and 8.75 cents on e-CBOT.



Crude oil prices fell to a seven-week low on Wednesday with September contract at the New York Mercantile Exchange closing down by over 3.1% at $ 124.44 a barrel, the lowest closing since February 4.



The Indian edible oilseeds is trading higher on short-covering of yesterday’s heavy losses, supported by the current recovery in the global edible oil markets. The Indian markets had lost more than 3.5% yesterday. The market is also supported by the anticipation of drop in khariff oilseed production amid fears of drought.



However, the weakness in crude oil, the overnight losses in US soy market, showers, forecasts for more rains in major oilseed tracts and strengthening of the Indian Rupee are weighing on the market sentiments limiting the gains. The overnight losses in US soy complex are not creating a major impact as they have already been largely factored into the Indian prices as the US market was trading sharply down in yesterday’s electronic trading itself.



The Indian Meteorological Department in its daily advisory has said that there is good possibility of fairly widespread rainfall activity over parts of Central India, adjoining Andhra Pradesh, Maharashtra and Gujarat from 25th July onwards for next 2-3 days. Rains, though very moderate have been reported from most of these regions from yesterday, improving the prospects for further sowing and the condition of the growing crops.



The suggestion by the Parliamentary standing committee that India should discourage futures trading in agriculture commodities to contain speculative trading and artificial rise in prices is also limiting the gains in the market. The report was released yesterday and had added to the heavy selling pressure in the Indian markets yesterday. However, the commodity markets regulator has clarified that there are no plans to curb futures trading in more commodities and that the ban on four items is likely to be lifted in September.



The September soybean contract at National Commodity Derivatives Exchange [NCDEX] at 11.25 hours is trading higher at Rs. 2,552.00 [+ 20.50] per 100 kg with 28,730 tonnes traded. The August contract at National Board of Trade [NBOT] is up at Rs. 2,633.00 [+ 17.50] per 100 kg.



August CPO at Multi Commodity Exchange of India is down at Rs. 456.00 [- 2.20] per 10 kg with 1,450 tonnes traded.



Crude Palm Oil [CPO] at the Bursa Malaysia Derivatives [BMD] has ended the morning session higher on short-covering of heavy losses in the previous six successive sessions, supported by the current gains in US soy oil. The palm oil market after losing 7% had closed at the lowest level in 2008 yesterday.



The benchmark October contract has ended the morning session higher at MYR 3,086.00 [- 59.00] a tonne with 4,476 lots traded. [MYR=Malaysian Ringitt][1 lot=25 tonnes]



The US soy complex closed lower on Wednesday worried over the favourable near-term weather outlooks, weakness in other grain markets and strong losses in crude oil. However, the market managed to close well off the session lows as some recovery was seen towards closing on account of the highly over-sold condition of the market.



August soybeans closed down 22 1/2 cents at $13.94 1/4 per bushel. November soybeans sank 25 cents to $13.84. August soymeal slipped $3.10 to $376.10 per short ton, and August soy oil dropped 158 points to 58.55 cents per pound.





MUSTARD SEED



Mustard seed futures is trading higher on short-covering of yesterday’s heavy losses tracking the gains in domestic soybean and current recovery in the global edible oil markets. The heavy selling pressure seen yesterday had led to mustard seed prices closing down by 3.8%.



The domestic fundamentals of expected drop in khariff production and limited stocks of rapeseed are also helping the market recovery. Mr. Govindbhai Patel of Dipak Enterprises said that India's rapeseed stocks are likely to fall 46% to 13 lakh tonnes tons at the start of the new marketing year for vegetable oils on lower output.



Most active mustard seed September futures on NCDEX is trading higher at Rs. 643.70 [+ 2.65] per 20 kg with 49,910 tonnes traded.



The regional markets are mixed with November contract at Hapur quoting at Rs.668.00 [- 6.50] per 100 kg.



CASTOR SEED



Castor seed futures is trading down with heavy profit-booking continuing on forecasts for rains in Gujarat, Andhra Pradesh and Maharashtra. Cloudy weather and mild showers is also reported in certain regions. The market had made very strong gains recently and is in an over-bought situation, which too is supporting the selling.



The September castor seed at NCDEX is trading lower at Rs. 641.90 [- 3.20] per 20 kg with 1,930 tonnes traded.



The regional markets are down with September contract at Rajkot quoting at Rs. 3,184.00 [- 28.00] per 100 kg.

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Spot Soya oil prices - July 24
24 Jul 2008 1:00 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 24/07/08 23/07/08
Min Max Min Max
Mumbai 635 636 648 649
Indore 638 639 650 651
*Akola 666 667 672 673
Alwar 652 653 655 656
*Amravati 663 664 668 669
Bharatpur 652 653 655 656
Bundi 646 657 652 653
Chennai 630 631 660 661
*Kolkata 685 686 690 691
Hyderabad 650 651 670 671
*Jalana 650 651 660 661
Kakinada 630 631 650 651
Kandla 630 631 640 641
*Kanpur 690 691 690 691
*Latur 657 658 664 665
Manglore 635 636 640 641
*Nagpur 670 675 675 676
*Nandad 657 658 663 664
Rajkot 640 642 640 642
*Solapur 659 660 667 668

Oilseeds tad up in range-bound movt.
25 Jul 2008 10:59 am

Mumbai, July 25 – Indian vegetable oilseed futures is displaying choppy, range-bound trading around yesterday’s closing levels. While, the strengthening of Indian Rupee, reports of showers and forecasts for more rains in main oilseed growing tracts are weakening the sentiments, idea that the upcoming crop would be smaller on a yearly bases are supporting the gains. The cues from the global markets are also mixed.



The Malaysian palm oil futures has ended the morning session down, despite sharp improvement in July 1-25 exports. The US soy complex closed mixed overnight with soybean, soymeal ending down on favourable near-term weather outlook. Soy oil ended modestly up. Mixed trading is being seen currently too with August soy oil and August soybean quoting by [-] 20 points and [+] 5.00 cents on e-CBOT.



Crude oil rebounded from a seven-week low yesterday with September contract at the New York Mercantile Exchange closing higher by $1.05 at $125.49 a barrel.



The Indian edible oilseeds opened down tracking current losses in global edible oil markets, but quickly recovered and are showing range-bound, choppy trading around yesterday’s closing levels. The global edible oil markets are currently trading down, which is pulling the Indian markets too down.



The strengthening of the Indian Rupee to a two-month high of around 42 a US Dollar, reports of showers and forecasts for further rains in the major oilseed tracts are also supporting the losses.



However, losses are limited as ideas that the forthcoming khariff crop would be sharply down from the last year’s due to dull rains have strengthened. The Indian Meteorological Department [IMD] in its weekly report has said that India’s rains from June 1 – July 23 have been 2% below normal. Rains in the week ending July 23 has been 33% below normal level with showers deficient in 23 of the 36 meteorological subdivisions.



Meanwhile, IMD has added that large parts of central and southern India may get more rains over the next five days. Rains in these two region and the west have been deficient so far, it said. The rains in Madhya Pradesh would be highly beneficial for the growing plants. However, the acreage in Maharashtra will not increase, as oilseed sowing in India normally ends by the third week of July.



The Ministry of Agriculture would be releasing its Crop Progress Report late today, which will be giving a clearer picture of the acreage and give further direction to the market.



The September soybean contract at National Commodity Derivatives Exchange [NCDEX] at 10.50 hours is trading higher at Rs. 2,549.00 [+ 2.50] per 100 kg with 13,230 tonnes traded. The August contract at National Board of Trade [NBOT] is down at Rs. 2,637.00 [- 6.50] per 100 kg.



August CPO at Multi Commodity Exchange of India is down at Rs. 452.50 [- 1.60] per 10 kg with 310 tonnes traded.



Crude Palm Oil [CPO] at the Bursa Malaysia Derivatives [BMD] has ended the morning session down despite sharp improvement in exports as traders are tracking the current losses in soy oil. Traders are also reporting that the improvement in exports was already factored in yesterday’s gains.



Cargo surveyor Intertek Agri Services has estimated Malaysia’s palm oil exports during the July 1-25 period at 1.13 million tonnes, up 26% on month. This is one of the highest export figures for the first 25 days of any month.



The benchmark October contract has ended the morning session lower at MYR 3,079.00 [- 34.00] a tonne with 3,665 lots traded. [MYR=Malaysian Ringitt][1 lot=25 tonnes]



The US soy complex closed mixed on Thursday with soybean, soymeal closing down on speculative liquidation and favourable near-term weather outlooks. However, the late recovery in crude oil helped soy oil to post modest gains towards closing. The losses in soybean and soymeal were also limited by many uncertainties relating to acreage, yield and production, particularly with the critical growing month of August still ahead.



August soybeans settled 9 1/4 cents lower at $13.85 and November soybeans ended 11 cents lower at $13.73. December soymeal settled $1.80 lower at $359.80 a short ton. December soy oil finished 35 points higher at 60.20 cents a pound.



MUSTARD SEED



Mustard seed futures is trading marginally up in range-bound trading on account of the positive domestic fundamentals of expected drop in khariff production and limited stocks of rapeseed. The overnight recovery in crude oil, gains in Indian soybean and the limited losses in US soy market are also supporting the gains. However, the losses in Malaysian palm oil futures are preventing any major gains in prices.



Most active mustard seed September futures on NCDEX is trading higher at Rs. 643.60 [+ 0.75] per 20 kg with 14,640 tonnes traded.



The regional markets are mixed with August contract at Hapur quoting at Rs.629.00 [+ 0.75] per 100 kg.



CASTOR SEED



Castor seed futures is trading marginally higher, with fresh buying being seen after the losses seen in the previous three sessions. However, the sentiments are still weak on account of the drastic strengthening of the Indian Rupee, mild showers and forecasts for more rains. The spot demand has also moved down, with buyers waiting for the correction to be over.



The August castor seed at NCDEX is trading higher at Rs. 645.50 [+ 2.70] per 20 kg with 210 tonnes traded.

CIF Rates: Soy dgm unchanged
25 Jul 2008 11:35 am

Kandla - Following are the prices for CIF (Cost Insurance and Freight prices) various edible oils at Kandla Port. All prices are in dollar($) per metric tone.

Oil
Month
Rate in $/MT

CPO
Aug
1037.5

Sep
1037.5

Palmolein
Aug
1137.5

Sep
1137.5

Soy Dgm


Aug
1340

Sep
1340

Oct
NA

SF OIL

Aug
1440

Sep
1440

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Good rainfall predicted for the next week
25 Jul 2008 3:30 pm

Mumbai : The rainfall is likely to increase in the present week (24th July-31st July) as per a report released by the India Meteorological Department. Rainfall is likely to increase considerably in Andhra Pradesh, Gujarat and Maharashtra although decrease in rainfall activity predicted in Gangetic plains. Good rainfall in those States is likely to congenial for the crop.



During the week 17th july to 23rd July rainfall activity remains confined mainly in Gangetic plains and North eastern states, coastal Andhra Pradesh and Tamil Nadu. The rainfall was below normal in Andhra Pradesh, Karnataka, Kerala, and Maharashtra. During this week, rainfall over the country as a whole was 33 % below the Long Period Average (LPA).



The good prediction of rainfall in next week is likely to be congenial for the crop especially Soybean, maize, guar, Ground Nut and pulses. Madhya Pradesh and Maharashtra is the largest producer of Soybean while Karnataka and Andhra Pradesh is the largest producer of Maize. Oilseeds, Pulses and Cereals like maize gets damaged due to deficient rainfall in those States. Good rainfall is likely to prove good for Soybean although lower yield is expected in Maize and ground nut.

Oil could reach $500, predicts Iran

Teheran, July 26: Iran's OPEC governor said world oil prices could reach as high as $500 per barrel in a few years' time if the dollar falls further and political tension worsens, an Iranian weekly said.

"If the dollar's value continues to decrease and if the political crisis becomes worse, the oil price would reach up to $500," Mohammad Ali Khatibi told Shahrvand-e Emrooz in an interview published on Saturday.

He was asked about predictions that oil prices could reach up to $200 per barrel in the next two or three years.

Oilseeds down on monsoon revival
26 Jul 2008 10:59 am

Mumbai – Indian vegetable oilseed futures were trading down with the revival of monsoon in central, southern India and Gujarat after the recent dry spell, resulting in heavy liquidation as concerns for the upcoming khariff crop have eased. The continuing losses in crude oil and the drastic strengthening of Rupee are also adding to the selling pressure.



U.S. crude oil futures ended lower on Friday at fresh seven-week lows with September contract at the New York Mercantile Exchange settling down by $2.23 at $123.26 a barrel, lowest since June 4's $122.30 close and wiping out a $1.05 gain on Thursday.



However, the US soy complex closed higher with short-covering of losses made in the previous two weeks seen amid over-sold market condition and lack of fresh news, which is putting a cap on the losses in the Indian markets.



The Indian edible oilseeds is trading down on account of the revival of monsoon in major oilseed tracts in the country. According to the India Meteorological Department (IMD), rains are likely to gather momentum around Sunday. The IMD has said that a low pressure area is expected over west-central and adjoining north-west Bay of Bengal around July 27, which will mark the revival of monsoon activity. In fact, breaking a disconcertingly long dry spell, it’s been raining in most parts of Maharashtra, Karnataka and Andhra Pradesh. Rains have also been reported in Madhya Pradesh and Gujarat.



Since the beginning of the monsoon on June 1 till July 23, rainfall across the country has been 2% short of the long period average (LPA) of 89 cm. For July 17-23, the deficit was 33%. Northwest India has seen bounteous rains since June 1 — 43% more than the LPA — while central India and the southern peninsula witnessed shortfalls of 15% and 32%, respectively. Rainfall was 62%and 49% below LPA in Marathwada and madhya Maharashtra.



The marked rainfall deficit in July has impacted sowing of oilseeds. Overall oilseed acreage is down this year at 13.45 million hectares as on July 25th compared to 13.7 million hectares last year, with the fall mainly in groundnut. The acreage under soybean has improved on account of normal rains in Madhya Pradesh in late June and early July. The Crop Progress Report released by the Ministry of Agriculture has reported planting of soybean to be carried out on 8.5 million hectares as on July 25th, up by 9.85% from 7.8 million hectares a year earlier. Groundnut has been sown on 3.5 million hectares as on July 25th down from 3.9 million hectares in the previous year.



The September soybean contract at National Commodity Derivatives Exchange [NCDEX] at 10.50 hours is trading lower at Rs. 2,505.00 [- 17.50] per 100 kg with 22,730 tonnes traded. The August contract at National Board of Trade [NBOT] is down at Rs. 2,603.00 [- 12.00] per 100 kg.



August CPO at Multi Commodity Exchange of India is down at Rs. 450.00 [- 0.50] per 10 kg with 740 tonnes traded.



The US soy complex closed mixed on Friday on short-covering of two-week’s losses amid over-sold condition and lack of fresh news. End-of-the-week consolidation was also seen on account of risk of a change in weather patterns during the weekend, particularly with variable crop conditions seen across the Midwest due to late plantings and re-plantings.



August soybeans settled 13 3/4 cents higher at $13.98 3/4 and November soybeans ended 13 1/2 cents higher at $13.86 1/2. December soymeal settled $0.40 higher at $361.20 per short ton. December soy oil finished 25 points higher at 60.45 cents per pound.



Crude Palm Oil [CPO] at the Bursa Malaysia Derivatives [BMD] closed down with benchmark October contract settling at MYR 3,070.00 [- 43.00] a tonne. [MYR=Malaysian Ringitt]



MUSTARD SEED



Mustard seed futures is trading sharply down tracking the losses in domestic soybean futures. The reports of rains, forecast for further showers in India’s major oilseed tracts and strong improvement in soybean acreage are creating the strong selling pressure in the market.



Most active mustard seed September futures on NCDEX is trading lower at Rs. 628.80 [- 4.90] per 20 kg with 36,210 tonnes traded.



The regional markets are down with August contract at Hapur quoting at Rs. 626.75 [- 2.00] per 100 kg.



CASTOR SEED



Castor seed futures is trading down with heavy selling pressure being seen on account of the revival of the monsoon after the recent dry spell. The sowing of castor in Gujarat normally begins in August and with beneficial rains just prior to sowing; the acreage could be expected to increase. The earlier dry phase has resulted in some non-castor tracts going un-seeded, which may be used for castor sowing, considering its current high prices. The drastic strengthening of the Indian Rupee and weakening of demand are also adding to the selling pressure.



The August castor seed at NCDEX is trading lower at Rs. 635.00 [- 8.10] per 20 kg with 380 tonnes traded.

Edible oils down on weak markets
26 Jul 2008 10:05 am

Mumbai - Indian edible oil prices during the week ended Friday extended a fall begun the previous week, tracking a bearish trend in overseas markets and responding to poor demand locally.

Heavy selling, crude oil's decline and Argentina's revocation of an export tax hike on soyoil and soybeans created weakness in the edible oil complex.

In India, prices of local edible oils track international prices as the country imports nearly half its annual edible oil requirement.

It buys soyoil from Argentina and Brazil and palm oil from Malaysia and Indonesia.

In the oil marketing year that began in November, total edible oil imports as of June 30 totaled 3.1 million metric tons, up from 2.7 million tons a year ago, data from the Solvent Extractors' Association showed.

The association expects imports to be around 550,000-600,000 tons per month over the next three to four months - until the summer-sown oilseed crop is available for crushing in November.

"Demand for soyoil is poor as of now, with not many offers coming in from other provinces," said Ramesh Malpani, a trader based in the major soybean producing province of Madhya Pradesh.

Good availability of palm oil in the country is also impacting prices, he said.

As of now, market participants are eyeing the sowing progress of soybeans and groundnuts in the country.

The area used for oilseeds from June 1-July 17 was at 10.1 million hectares, compared with 9.9 million hectares a year earlier.

Planting of soybeans was carried out on 6.50 million hectares, up from 5.50 million hectares a year earlier. However, groundnuts were sown over less area - 2.70 million hectares, compared with 3.04 million hectares.

Traders still fear that low rain in the major growing areas of central and western India could hamper further sowing and development of the already sown crop.

The total volume of monsoon rains falling in the June 1-July 23 period declined to 2% below normal, according to data provided by the India Meteorological Department.

"As of now there has been no damage to the sown crop. However, if rains continue to be lower in the coming week, then some damage could be seen," said Malpani.

However, the latest weather report has predicted rains in large parts of central, western, and southern India over the next five days, which might provide relief to the crops. Local refined soyoil was at Rs 62,200 a metric ton, down from Rs 65,700/ton a week earlier.

Refined, bleached and deodorized palm olein was at Rs 53,200/ton, down from Rs 57,000/ton.

Crude palm oil was trading at Rs 45,600/ton, down from Rs 50,400/ton a week earlier.

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Mumbai edible oil prices - July 26
26 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
25/07/08 26/07/08 Change
Sunflower oil Exp
650 635 -15
oil Ref
695 690 -5
Groundnut oil
710 710 -
RBD Palmolein
527 525 -2
Cottonseed oil ref
625 625 -
Mustard oil
665 665
Ref Soy oil
620 620 -

Soya bean NCDEX Aug
26 Jul 2008 9:00 am

The trend is down

The market could violate the major support level of Rs 2578.5 in the last session. Closing below Rs 2578.5 the market is expected to come down to Rs 2500-2450

As the trend is still down therefore enter fresh short below Rs 2578.5 with stop loss above Rs 2610

INTRA-DAY LEVELS

Last Close
Daily Closing Reversal

Point
Level 1
Level 2
Center Point
Level 3
Level 4

2614.0
2655.0
2581.0
2597.0
2622.0
2639.0
2663.0


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Mustard Seed NCDEX Sep
26 Jul 2008 8:59 am

The trend is down

The market could not violate the major support level of Rs 627.55 in the last session. Closing below Rs 627.55 the market is expected to move down to Rs 622

Enter fresh short below Rs 627.55 with stop loss above Rs 637

INTRA-DAY LEVELS

Last Close
Daily Closing Reversal

Point
Level 1
Level 2
Center Point
Level 3
Level 4

634.0
663.2
623.8
628.9
637.3
642.4
650.7

Mumbai edible oil prices - July 28
28 Jul 2008 10:30 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
26/07/08 28/07/08 Change
Sunflower oil Exp
635 635 -
oil Ref
690 690 -
Groundnut oil
710 710 -
RBD Palmolein
525 524 -1
Cottonseed oil ref
625 622 -3
Mustard oil
665 658 -7
Ref Soy oil
620 622 +2

Product: FOB Malaysian ports- July 28
28 Jul 2008 10:31 am

Mumbai - Following rates were quoted for RBD Palmolein in India on FOB Malaysian port conditions.

Month
US $/ Per tonnes

Aug
1102.5

Sep
1102.5

Oct
1102.5


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Soybean NCDEX Aug
28 Jul 2008 9:36 am

The trend is down.

Sell at market price and on rise to Rs. 2595 – Rs. 2615 with stop loss of Rs. 2647.

Expect a fall towards Rs. 2567 – Rs. 2547.

Intra-day traders can wait for a rise above Rs. 2615 and when it fall below Rs. 2615 then sell with whatever high registered above Rs. 2615 as a stop loss. Subsequently, cover short at Rs. 2595 – Rs. 2567 or below.

INTRA-DAY LEVELS

Last Close
Daily Closing Reversal

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

2588
2660

2547
2567
2595
2615
2643


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Mustard seed NCDEX Sep
28 Jul 2008 9:37 am

The trend is down.

Sell at market price and on rise to Rs. 628.10 – Rs. 634.00 with stop loss of Rs. 636.

Expect a fall towards Rs. 620 – Rs. 614.

Intra-day traders can wait for a rise above Rs. 634 and when it fall below Rs. 634 then sell with whatever high registered above Rs. 634 as a stop loss. Subsequently, cover short at Rs. 628 – Rs. 620 or below.

INTRA-DAY LEVELS

Last Close
Daily Closing Reversal

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

626.05
657.4

614.25
620.15
628.10
634.00
641.95


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Castor seed NCDEX Aug
28 Jul 2008 9:40 am

The trend is down.

Sell at market price and on rise to Rs. 631.30 – Rs. 635.5 with stop loss of Rs. 637.

Expect a fall towards Rs. 626 – Rs. 622.

Intra-day traders can wait for a rise above Rs. 635.50 and when it fall below Rs. 635.50 then sell with whatever high registered above Rs. 635.50 as a stop loss. Subsequently, cover short at Rs. 631 – Rs. 626 or below.

INTRA-DAY LEVELS

Last Close
Daily Closing Reversal

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

630.00
652.05

621.7
625.9
631.3
635.5
640.9

Oilseeds end down on global losses

28 Jul 2008 5:22 pm

Mumbai – Indian vegetable oilseed futures closed down Monday after a session of choppy trading affected by late losses in Malaysian palm oil futures and reports of good rains in the major oilseed tracts across India.



Malaysian palm oil futures closed sharply down on late speculative selling at the lowest level in 2008. The US soy complex had closed higher on Friday and the gains were continuing in early after-hours trading. However, the market moved down later, with August soy oil and August soybean quoting mixed by [-] 27 points and [+] 12.50 cents on e-CBOT when the Indian markets closed.



U.S. crude oil futures moved up in electronic trading today with September contract at New York Mercantile Exchange quoting higher by $ 1.61 a barrel at $ 124.87 a barrel at 17.00 hours IST. The contract had ended lower on Friday at fresh seven-week lows of $123.26 a barrel.



The Indian oilseeds closed sharply down after a session of choppy trading tracking the late heavy losses in global edible oil markets, revival of monsoon and reduction of concerns for the growing khariff crops. The Indian markets had opened negatively, despite the early gains in the global markets. However, the prices soon moved up due to the positive overseas cues and gains in the cash markets. Losses again cropped up towards evening as global markets moved down.



The monsoon was vigorous in almost all regions of Maharashtra, Andhra Pradesh and Karnataka over the weekend. Madhya Pradesh and Gujarat also witnessed fairly good rainfall. The Indian Meteorological Department (IMD) forecasted fairly widespread rainfall activity over all these regions till 30th of July.



While, the late rains would be highly beneficial for the already sown and germinated crops, it was too late for fresh sowing in the un-seeded areas of Maharashtra. Even, if sowing occurs the yield would be less. Thus, the market was expecting the upcoming soybean crop to be around 9 million tonnes against expectations of above 10 million tonnes, before the sowing season commenced.



The September soybean contract at National Commodity Derivatives Exchange [NCDEX] closed lower at Rs. 2,498.00 [- 3.50] per 100 kg with 97,090 tonnes traded. The August contract at National Board of Trade [NBOT] ended down at Rs. 2,571.00 [- 16.50] per 100 kg.



August CPO at Multi Commodity Exchange of India ended down at Rs. 448.00 [- 2.50] per 10 kg with 760 tonnes traded tracking the late losses in Malaysian palm oil futures.



Crude Palm Oil [CPO] at the Bursa Malaysia Derivatives [BMD] fell sharply on speculative selling and profit-taking in the last few minutes of trading. The market erased all the gains made in the morning session and ended at its lowest level in 2008. The benchmark contract has ended below the critical psychological mark of MYR3,100 for three of the past four trading days.



The benchmark October contract after touching an intra-day high of MYR 3,162, fell sharply to close down at MYR 3,001.00 [- 69.00] a tonne with 10,314 lots traded. [MYR=Malaysian Ringitt][1 lot=25 tonnes]



The US soy complex closed up on Friday on short-covering of two-week’s losses amid over-sold condition and lack of fresh news. End-of-the-week consolidation was also seen on account of risk of a change in weather patterns during the weekend, particularly with variable crop conditions seen across the Midwest due to late plantings and re-plantings.



August soybeans settled 13 3/4 cents higher at $13.98 3/4 and November soybeans ended 13 1/2 cents higher at $13.86 1/2. December soymeal settled $0.40 higher at $361.20 per short ton. December soy oil finished 25 points higher at 60.45 cents per pound.



MUSTARD SEED



Mustard seed futures closed lower tracking the losses in domestic soybean and late weakness in the global edible oil markets. Choppy trading was witnessed in this market too, with the prices following the trend in soybean. At the same time, the revival of monsoon in the major oilseed tracts, forecast for further showers and easing of concerns for the upcoming khariff oilseeds crops were keeping the fundamentals bearish as a good khariff output would reduce the demand for mustard seed from October and limit its long-term gains.



Most active mustard seed September futures on NCDEX closed lower at Rs. 621.30 [- 3.75] per 20 kg with 1,71,050 tonnes traded.



The regional markets ended down with August contract at Hapur settling at Rs. 623.25 [- 2.45] per 100 kg.



CASTOR SEED



Castor seed futures closed mixed a session of choppy trading. The market opened down, recovered to trade positively for most of the session. However, selling pressure intensified from late noon. The selling pressure was seen on account of the revival of the monsoon after the recent dry spell. The sowing of castor in Gujarat normally begins in August and with beneficial rains just prior to sowing; the acreage could be expected to increase as the earlier dry phase had led to some non-castor tracts going un-seeded.



The August castor seed at NCDEX closed lower at Rs. 627.80 [- 2.60] per 20 kg with 3,310 tonnes traded.



The regional markets closed mixed with September contract at Rajkot settling marginally up at Rs. 3,128.00 [+ 3.00] per 100 kg.