Boiling News & Veg Oils ,crude

Oilseed futures up on fresh buying
3 Jun 2008 11:00 am

Mumbai - Indian vegetable oilseed futures were trading higher tracking gains in global markets on anticipation of supply tightness as Argentina farmers’ strike has been extended till next Monday. However, the gains are limited by the progress of monsoon and recent sharp appreciation in the Indian Rupee.



Malaysian palm oil futures has ended the morning session positively largely supported by the news from Argentina. The US soy complex closed moderately higher on Monday night, but is showing range-bound trading currently. July soy oil and July soybeans on e-CBOT are currently quoting by [-] 6 points and [+] 2.75 cents respectively.



The domestic markets are seeing fresh buying interest after the profit-booking and strong selling seen yesterday. The steady, moderate gains seen in the US soy markets in the previous two sessions are also prompting the Indian players to make fresh purchases. However, the arrival of monsoon and recent sharp appreciation of Indian Rupee are restricting the gains.



The Argentina farmers’ groups have decided to extent their strike targeting grain exports atleast till Monday. Farmers are protesting against sharp rise in export tax on soybeans. The government modified the tax scheme on Thursday, lowering the highest theoretical bracket as a concession to the farmers. However, agricultural sector leaders feel it is not enough.



Argentina is the world’s largest exporter of soy oil, soymeal and third largest exporter of soybean and disruption of exports from this country will tighten global vegetable oil and oilseed supplies. Traders feel that the impact of the Argentina growers’ strike is not overtly felt by buyers currently because of ample stocks at consuming destinations and a rise in palm oil supplies, but this may be not be the case after few months,



Meanwhile, the Indian sentiments do not support strong gains on account of the progress of the monsoon and sharp appreciation of the Indian Rupee. India's rupee advanced on Monday to the highest level in almost three weeks after the central bank said it will buy the currency in exchange for dollars to help refiners meet rising crude oil costs. The rupee climbed 0.1% to 42.41 a dollar at close, before touching 42.17, the highest intraday level since May 14.



The Rupee had weakened by around 5% in May before the sharp reversal of course from Friday. Appreciation of the Rupee will decrease the cost for importing edible oil and decrease the incentive for soymeal exports. Firmness in soymeal had been one of the major reasons for the recent rally in soybean.



The most active July soybean contract at National Commodity Derivatives Exchange [NCDEX] at 10.45 hours is trading higher at Rs. 2,472.00 [+ 6.50] per 100 kg with 5,510 tonnes traded. June soybean at National Board of Trade [NBOT] is up at Rs. 2,481.50 [+ 9.00] per 100 kg.



Crude Palm Oil [CPO] at the Bursa Malaysia Derivatives [BMD] has ended the first session higher supported by the overnight gains in US soy oil and extension of strike by farmers in Argentina.



The benchmark August contract has ended the morning session higher at MYR 3,530.00 [+ 21.00] a tonne with 2,243 lots traded. [MYR=Malaysian Ringitt][1 lot=25 tonnes]



The US soy complex closed higher on Monday night after a session of range-bound trading supported by positive demand outlooks due to the Argentina strike, supportive crude oil, technical buying and uncertainty of 2008 soybean acreage and output.



July soybeans settled 2 cents higher at $13.65 1/2 and November soybeans ended 4 cents higher at $13.58 1/2. July soymeal settled $1.50 higher at $343.00 per short ton. July soy oil finished 39 points higher at 61.70 cents per pound.



MUSTARD SEED



Mustard seed futures is trading moderately higher supported by the gains in domestic soy complex and global edible oil markets. However, the gains are more subdued with some selling pressure still being witnessed. The arrival of monsoon in the Indian mainland is limiting the gains. A normal monsoon would result in a record khariff oilseed production as area under oilseeds is expected to increase sharply. This would restrict the long-term gains in mustard seed.



Most active mustard seed July futures on NCDEX is trading higher at Rs. 637.80 [+ 0.30] per 20 kg with 15,440 tonnes traded.



The regional markets are down with August contract at Sirsa and Hapur quoting at Rs. 557.40 [- 0.30] and Rs. 613.10 [- 0.60] per 20 kg respectively.



CASTOR SEED



Castor seed futures is trading down with heavy selling pressure being seen on account of the sharp appreciation in the Indian Rupee, which reduces the revenue obtained from exports. The arrival of monsoon and expectation of a good crop in the next season too affected sentiments as currently almost the entire value chain is well-stocked.



Castor seed June contract at NCDEX is trading lower at Rs. 518.30 [- 3.20] per 20 kg with 180 tonnes traded.

Mumbai edible oil prices - June 03
3 Jun 2008 10:16 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
02/06/08 03/06/08 Change
Sunflower oil Exp
670 670 -
oil Ref
720 725 +5
Groundnut oil
705 705 -
RBD Palmolein
576 578 +2
Cottonseed oil ref
614 623 +9
Mustard oil
635 633 -2
Ref Soy oil
635 635 -

Product: FOB Malaysian ports- June 03
3 Jun 2008 10:17 am

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

Month
US $/ Per tonnes

June
1247.5

July
1247.5

Aug
1247.5

DJ China Diesel Shortage To Ease On Summer Fishing Ban From June
2 Jun 2008 11:03 am

BEIJING (Dow Jones)--A summer fishing ban in the South and East China Seas will damp the country"s demand for diesel ease a prevailing diesel shortage.

The summer fishing ban will last two months from noon on June 1 to noon on Aug. 1 in the South China Sea and the southern part of the East China Sea, and will last three months from June 16 to Sept. 16 in the northern part of the East China Sea, the Ministry of Agriculture said in statements.

The ban on provision of fuel to fishing vessels will noticeably reduce fuel demand in the summer, the statements said, without providing a more precise estimate.

Since spring, there have been shortages of diesel, the main fuel for fishing vessels, farming machines and vehicles, due in part to busy fishing and farming activities.

Reduced supply from teapot refineries that produce off-specification diesel have worsened the shortage. Many of the refineries have shut down due to losses caused by a combination of controlled domestic diesel prices and surging prices of their feedstock, imported fuel oil.

Cabinet meet on fuel price hike tomorrow

New Delhi, June 03: The Cabinet will meet on Wednesday to decide on raising fuel prices that have been necessitated by the relentless rise in international crude oil prices.

"We are still discussing the issue and a Cabinet meeting is scheduled for tomorrow," External Affairs Minister Pranab Mukherjee told reporters on the sidelines of an industry event on Tuesday.

He, however, refused to comment any further on the Cabinet agenda.

With consensus on raising petrol, diesel and domestic LPG prices still eluding, the Cabinet Committee on Political Affairs (CCPA) will meet early tomorrow.

If a consensus is hammered at the CCPA meeting, the Cabinet Committee on Economic Affairs (CCEA) may be convened, government sources said.

Prime Minister Manmohan Singh on Monday indicated of an imminent fuel price hike when he said consumers cannot be fully insulated from the impact of rising global oil prices.

With the surge in global oil prices leaving a Rs 2,25,040 crore revenue deficit with oil companies, Singh has over the past one week held several rounds of consultations with senior ministers and UPA chairperson Sonia Gandhi but a consensus has eluded the government.

Petroleum Minister Murli Deora, who has been pushing for a Rs 10 a litre hike in petrol, Rs 5 per litre increase in diesel and Rs 50 per cylinder raise in LPG prices, has readied a note for consideration of the Cabinet.

However, the hike may be moderated to Rs 3, 5 or 7 a litre on petrol and Rs 2, 3 or 4 a litre on diesel. LPG prices may be raised by Rs 20 per 14.2-kg cylinder, sources said.

Oil steady above $127; possible peak versus demand
Tuesday June 3, 6:43 am ET
Oil prices steady as traders gauge market's outlook amid supply concerns

Crude oil futures traded steadily above $127 a barrel Tuesday as investors sought to gauge whether oil prices have peaked, even as many worry that supplies are barely meeting growing global demand.
By midday in Europe, Light, sweet crude for July delivery was down 17 cents at $127.59 a barrel in electronic trading on the New York Mercantile Exchange. On Monday, the contract rose 41 cents to settle at $127.76.

In London, Brent crude on the ICE Futures exchange fell 10 cents to $127.92 a barrel.

Oil prices have fallen back sharply over the last dozen days after climbing above a record $135 a barrel on May 22. Prices edged higher on Monday on concerns about heating oil supplies and after an OPEC official said there is no need for the cartel to pump more oil.

"Typically a seesaw pattern is an indication that the market has peaked," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore. "But some see this as an opportunity to buy. Global demand remains tight and supply remains restrained."

Investors were digesting reports that Iran's top Organization of Petroleum Exporting Countries official said there is no need for a special OPEC meeting to discuss raising output, said Phil Flynn, an analyst at Alaron Trading Corp. in Chicago.

Flynn said oil futures also rose Monday rose in sympathy with natural gas futures, which soared as high temperatures in many parts of the U.S. raised demand from utilities that use natural gas to generate electricity for home cooling. July natural gas futures were up 8.8 cents in Asian trading at $12.057 per 1,000 cubic feet.

Shum said the oil market remains "structurally tight," meaning that global demand continues to grow despite an economic slowdown in the U.S. -- the world's top oil consumer -- while supplies remain constrained.

"OPEC supply has failed to meet expectations. There's not a great deal of spare capacity in OPEC," he said.

Shum said some traders took heart in the slight improvement of a key indicator for the U.S. manufacturing sector.

The Institute for Supply Management's index of manufacturing activity edged up to 49.6 in May compared with an April reading of 48.6, easing some concerns that soaring oil prices were crushing manufacturers. However, the reading remained below 50, the dividing point that indicates if manufacturing is in a recession.

With global stock markets still weak compared with the robust gains of the past few years, many investors see better potential for gains in the oil market. Speculative buying has been cited as a major reason behind oil's more than doubling its price in a year.

"As an asset class, oil has performed better than stocks and bonds," said Shum. "Until global equities turn better, oil demand collapses or supplies increase significantly, we're not going to see a substantial drop in oil prices."

Traders are also edgy about possible disruptions now that the Atlantic hurricane season has officially begun.

"The market may have found some support from the start of the hurricane season," said analysts at JBC Energy in Vienna, Austria.

While the first storm, Arthur, weakened into a tropical depression, two ports in Mexico remained shut over the weekend and oil exports to the United States were temporarily reduced, JBC said.

"Later in the summer, if we get a threatening storm in U.S. Gulf of Mexico we could have a new peak" above $135, Shum said.

In other Nymex trading, heating oil futures rose 1.95 cents to $3.7415 a gallon while gasoline prices dropped 0.47 cent to $3.3860 a gallon. Natural gas futures were up 20.3 cents to $12.172 per 1,000 cubic feet.

AP Business Writer Malcolm Foster in Bangkok, Thailand, contributed to this report.

Oilseeds improve in range-bound trade
3 Jun 2008 2:16 pm




Mumbai - Indian vegetable oilseed futures were trading higher at noon and increased the moderate gains seen at the opening on account of fresh buying interest in the domestic markets Tuesday. However, the global markets despite being positive are displaying highly range-bound trading, which is restricting domestic gains too.



Malaysian palm oil futures is trading moderately higher largely supported by the news from Argentina. The US soy complex closed moderately higher on Monday night, but is showing range-bound trading currently. July soy oil and July soybeans on e-CBOT are currently quoting by [-] 8 points and [+] 6.00 cents respectively.



Fresh buying interest is being seen in the local markets after the profit-booking and strong selling seen yesterday. While, normal monsoon would ensure a record khariff oilseed production, the current supply scenario is still tight. Demand is also good as is usually seen at the beginning of a month. The industry is expecting a fuel hike to be announced on Wednesday or Thursday, which too is being factored into the quotes made sellers.



The on-going Gujjar strike has affected the transportation of mustard oil and seed as many major roads have been closed. However, traders are reported to be using smaller roads and arrivals are being reported at all up-country markets.



The steady, moderate gains seen in the US soy markets in the previous two sessions are also prompting the Indian players to make fresh purchases. The global markets are supported by the decision by Argentina farmers groups to extent their strike till next Monday.



However, the gains in the global markets are highly range-bound with players worried over increase in supplies soon. While, June August are high production months for palm oil, sowing of soybean is more than 70% completed in the US.



The domestic gains are also limited by the arrival of monsoon into the Indian mainland and recent sharp appreciation of Indian Rupee. The sowing preparations are reported to have commenced in some parts of Karnataka and Andhra Pradesh, where rains have intensified. Rains are expected in Madhya Pradesh the largest producer of soybean by mid-June and heavy sowing is expected in late June and early July.



The most active July soybean contract at National Commodity Derivatives Exchange [NCDEX] at 14.05 hours is trading higher at Rs. 2,476.00 [+ 10.50] per 100 kg with 26,510 tonnes traded. June soybean at National Board of Trade [NBOT] is up at Rs. 2,480.00 [+ 7.50] per 100 kg.



Most active mustard seed July futures on NCDEX is trading higher at Rs. 639.00 [+ 1.35] per 20 kg with 57,540 tonnes traded.



Crude Palm Oil [CPO] at the Bursa Malaysia Derivatives [BMD] is trading higher with benchmark August contract quoting at MYR 3,530.00 [+ 21.00] a tonne with 5,235 lots traded. [MYR=Malaysian Ringitt][1 lot=25 tonnes]

Spot Mustard oil prices - June 03
3 Jun 2008 4:04 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 03/06/08 02/06/08
Min Max Min Max
Mumbai 633 634 635 636
Alwar 625 626 618 620
Bharatpur 625 626 618 620
Bikaner 605 606 615 616
Bundi 618 619 618 619
Charkhi Dadri 633 634 633 634
*Delhi 642 643 642 643
Haldiya port 720 721 720 721
Jaipur 623 624 623 624
Kanpur 665 666 660 661
Kota 618 619 618 619
Ludhiyana 640 641 640 641
Sriganganagar 624 625 620 622

Spot Soya oil prices - June 03
3 Jun 2008 4:08 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 03/06/08 02/06/08
Min Max Min Max
Mumbai 635 636 635 636
Indore 628 629 630 631
*Akola 659 660 658 659
Alwar 650 651 650 651
*Amravati 650 651 652 653
Bharatpur 650 651 650 651
Bundi 645 646 645 646
Chennai 645 646 645 646
*Kolkata 665 666 665 666
Hyderabad 650 651 650 651
*Jalana 655 656 655 656
Kakinada 645 646 645 646
Kandla 635 636 635 636
*Kanpur 660 661 655 656
*Latur 655 656 652 653
Manglore 640 641 640 641
*Nagpur 668 672 660 670
*Nandad 654 655 650 651
Rajkot 620 625 620 625
*Solapur 655 656 655 656

Spot Groundnut oil prices - June 03
3 Jun 2008 4:02 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 03/06/08 02/06/08
Min Max Min Max
Mumbai 705 706 705 706
Rajkot 680 685 685 690
Hyderabad 700 701 700 701
Ahemdabad 690 691 690 691
Chennai 695 696 690 691
Kurnool 680 681 685 686
Narsarropeth 720 721 725 726
Prodattour 670 671 675 676
Bikaner 660 665 665 670