Oilseeds down on selling
17 Sep 2008
new dehi - Indian vegetable oilseed futures were trading lower with fresh selling being seen after yesterday’s short-covering with sentiments affected by the huge overnight losses in US soy oil and crude oil. The weak domestic sentiments, expectation of further losses in global markets due to the global financial turmoil are also adding to selling pressure.
The Malaysian palm oil futures has ended the morning session tad down after a session of choppy trading. The US soy complex closed sharply down overnight. However, it is trading tad up currently with December soy oil and November soybean quoting up by 18 points and 1.75 cents on e-CBOT.
The energy markets fell sharply overnight with October crude oil at the New York Mercantile Exchange settling down by $ 4.56 at $ 91.15 a barrel, lowest settlement since February 7. However, it is recovering smartly currently with the contract quoting at $ 93.90 a barrel.
Indian soybean futures are trading lower with fresh selling being seen after yesterday’s short-covering with markets expecting further losses in the global edible oil, energy markets due to the turmoil in the financial markets. The weak domestic sentiments of increasing arrivals, approaching peak harvest season and sufficient stocks of imported oils at ports are also supporting the selling.
Though, US soy oil and crude oil are showing moderate recovery currently, palm oil futures at Malaysia has ended the morning session down. This is prompting profit-booking of yesterday’s gains and fresh selling in the Indian markets. The strengthening of Rupee to 46.4 levels from yesterday’s 46.9 levels against the US Dollar on expectation of interference from Reserve Bank is also weakening sentiments as a stronger Rupee will make imports of edible oil less costly
However, anticipation of strong festival demand in the cash markets at the current highly corrected prices are limiting the slide in the cash markets, which is limiting the losses in the futures markets.
The October soybean contract at National Commodity Derivatives Exchange [NCDEX] at 10.35 hours is trading lower at Rs. 2,037.00 [- 26.50] per 100 kg with 20,880 tonnes traded. November contract at NCDEX is down at Rs. 1,905.50 [- 16.50] per 100 kg. The October contract at National Board of Trade [NBOT] is trading lower at Rs. 2,040.00 [- 26.50] per 100 kg.
October CPO at Multi Commodity Exchange of India is trading lower at Rs. 329.00 [- 1.90] per 10 kg with 440 tonnes traded.
Crude Palm Oil [CPO] futures on Bursa Malaysia Derivatives [BMD] has ended the morning session tad down, with the market currently finding support at MYR 2,100 a tonne, which it briefly breached during the session. The overnight losses in US soy oil, crude oil and fears of further meltdown in prices, despite the current recovery in US markets is preventing palm oil from moving up.
The benchmark December contract has ended the session down at MYR 2,111.00 [- 9.00] a tonne with 6,589 lots traded. [MYR=Malaysian Ringitt] [1 lot=25 tonnes]
The US soy complex closed sharply down on Tuesday affected by the heavy losses in crude oil, strength in US Dollar and fear of economic slowdown lowering demand. The market largely ignored the tight fundamentals, which were not supportive of such heavy losses.
November soybeans ended 55 cents lower at $11.24. December soymeal settled $16.30 lower at $319.50 per short ton. December soy oil finished 249 points lower at 44.07 cents per pound.
MUSTARD SEED
Mustard seed futures is trading moderately down with fresh selling being seen after yesterday’s short covering, with the market correcting to meet yesterday’s losses in US soy complex, crude oil and Malaysian palm oil futures. However, the current recovery in US soy, crude oil and stable cash markets are limiting the losses. The cash market is seeing strong festival demand by consumers as the prices have fallen very sharply.
Most active mustard seed November futures on NCDEX is trading lower at Rs. 549.70 [- 3.25] per 20 kg with 15,190 tonnes traded. The regional markets are down with November contract at Hapur settling at Rs. 637.50 [- 1.10] per 100 kg
