Oilseeds sharply down on crude
4 Jun 2008 11:04 am
Mumbai - Indian vegetable oilseed futures were trading lower Wednesday affected by heavy losses in the global edible oil markets and crude oil markets. Uncertainty surrounding the fuel price hike and the Cabinet meeting today are also adding to the market volatility.
Malaysian palm oil futures has ended the morning session sharply lower affected by the heavy overnight losses in US soy oil and crude oil. The US soy complex closed lower on Tuesday night affected by heavy losses in crude oil and fund selling. However, mixed trading is being seen currently with July soy oil and July soybeans quoting by [-] 23 points and [+] 3.50 cents respectively on e-CBOT.
The energy markets made heavy losses overnight worried over the increased surveillance on funds by the US Commodity Futures Trading Corporation [CFTC] with July crude oil at the New York Mercantile Exchange closing at $ 124.31 a barrel overnight.
The domestic markets are making losses tracking the heavy losses in the global edible oil and energy markets. Fear of decreased participation by funds has led to losses in global markets. However, concerns for supply tightness due to the Argentina strike and planting delays for US soybean are limiting the losses.
Reports of heavy rain in part of Maharashtra and soybean sowing activities commencing in these areas have also added to the bearish tone in the Indian markets.
Cabinet Committee on Political Affairs (CCPA) will meet on Wednesday morning and is expected to take a decision on raising fuel prices. The market has been speculating on this issue for more than a week now. But the decision was getting delayed due to lack of political consensus. Petroleum Ministry is reported to be seeking a Rs. 10 per litre increase in petrol and Rs. 5 a litre hike in diesel prices along with cut in customs and excise duties to offset the impact of surge in crude oil prices that have touched $ 135 a barrel.
The quantum of hike in fuel prices is still uncertain and is adding to the market volatility. Players are also worried that the Cabinet meeting may come up with some fiscal measure to control inflation.
The most active July soybean contract at National Commodity Derivatives Exchange [NCDEX] at 10.50 hours is trading lower at Rs. 2,428.00 [- 30.50] per 100 kg with 25,730 tonnes traded. June soybean at National Board of Trade [NBOT] is down at Rs. 2,450.00 [- 16.00] per 100 kg.
Crude Palm Oil [CPO] at the Bursa Malaysia Derivatives [BMD] has ended the morning session sharply down affected by the heavy overnight losses in US soy oil and crude oil. The benchmark August contract has ended at MYR 3,480.00 [- 50.00] a tonne with 2,613 lots traded. [MYR=Malaysian Ringitt][1 lot=25 tonnes]
The US soy complex closed down on Tuesday night following reports of CFTC's announcement to initiate probe into commodity market and heavy losses in crude oil. The CFTC said that index traders, swap dealers need to be monitored more closely and added that it was withdrawing a proposal to hike federal speculative position limits on some agricultural futures. Ideas that new initiatives from CFTC could limit fund buying led to speculative selling.
However, the market's downside was limited by lingering planting delays and slow emergence rates. The U.S. Department of Agriculture, in its weekly crop progress report on Monday, said 32% of the U.S. soybean crop was emerged, up from 12% last week but down from the average of 55%. It said 69% of the soybean crop was planted, up from 52% last week but down from the five-year average of 81%.
July soybeans settled 6 cents lower at $13.59 1/2 and November soybeans ended 4 3/4 cents lower at $13.53 3/4. July soymeal settled $4.00 higher at $347.00 per short ton. July soy oil finished 66 points lower at 61.04 cents per pound.
MUSTARD SEED
Mustard seed futures is trading lower supported by the losses in domestic soybean and global edible oil markets. The selling pressure in the physical markets is also reported to be higher, with players worried over long-term gains. However, the prospect of rise in fuel prices is limiting the losses.
The arrival of monsoon in the Indian mainland has affected the sentiments. A normal monsoon would result in a record khariff oilseed production as area under oilseeds would increase sharply and affect the long-term gains in mustard seed.
Most active mustard seed July futures on NCDEX is trading lower at Rs. 633.00 [- 3.45] per 20 kg with 41,150 tonnes traded.
The regional markets are down with August contract at Sirsa and Hapur quoting at Rs. 558.90 [- 0.10] and Rs. 613.30 [- 0.50] per 20 kg respectively.
CASTOR SEED
Castor seed futures is trading marginally higher in thin trading. Castor seed July contract at NCDEX is trading higher at Rs. 527.60 [+ 0.50] per 20 kg with 50 tonnes traded. The regional markets are also up with September contract at Rajkot quoting at Rs. 2,768.00 [+ 3.00] per 100 kg.
4 Jun 2008 11:04 am
Mumbai - Indian vegetable oilseed futures were trading lower Wednesday affected by heavy losses in the global edible oil markets and crude oil markets. Uncertainty surrounding the fuel price hike and the Cabinet meeting today are also adding to the market volatility.
Malaysian palm oil futures has ended the morning session sharply lower affected by the heavy overnight losses in US soy oil and crude oil. The US soy complex closed lower on Tuesday night affected by heavy losses in crude oil and fund selling. However, mixed trading is being seen currently with July soy oil and July soybeans quoting by [-] 23 points and [+] 3.50 cents respectively on e-CBOT.
The energy markets made heavy losses overnight worried over the increased surveillance on funds by the US Commodity Futures Trading Corporation [CFTC] with July crude oil at the New York Mercantile Exchange closing at $ 124.31 a barrel overnight.
The domestic markets are making losses tracking the heavy losses in the global edible oil and energy markets. Fear of decreased participation by funds has led to losses in global markets. However, concerns for supply tightness due to the Argentina strike and planting delays for US soybean are limiting the losses.
Reports of heavy rain in part of Maharashtra and soybean sowing activities commencing in these areas have also added to the bearish tone in the Indian markets.
Cabinet Committee on Political Affairs (CCPA) will meet on Wednesday morning and is expected to take a decision on raising fuel prices. The market has been speculating on this issue for more than a week now. But the decision was getting delayed due to lack of political consensus. Petroleum Ministry is reported to be seeking a Rs. 10 per litre increase in petrol and Rs. 5 a litre hike in diesel prices along with cut in customs and excise duties to offset the impact of surge in crude oil prices that have touched $ 135 a barrel.
The quantum of hike in fuel prices is still uncertain and is adding to the market volatility. Players are also worried that the Cabinet meeting may come up with some fiscal measure to control inflation.
The most active July soybean contract at National Commodity Derivatives Exchange [NCDEX] at 10.50 hours is trading lower at Rs. 2,428.00 [- 30.50] per 100 kg with 25,730 tonnes traded. June soybean at National Board of Trade [NBOT] is down at Rs. 2,450.00 [- 16.00] per 100 kg.
Crude Palm Oil [CPO] at the Bursa Malaysia Derivatives [BMD] has ended the morning session sharply down affected by the heavy overnight losses in US soy oil and crude oil. The benchmark August contract has ended at MYR 3,480.00 [- 50.00] a tonne with 2,613 lots traded. [MYR=Malaysian Ringitt][1 lot=25 tonnes]
The US soy complex closed down on Tuesday night following reports of CFTC's announcement to initiate probe into commodity market and heavy losses in crude oil. The CFTC said that index traders, swap dealers need to be monitored more closely and added that it was withdrawing a proposal to hike federal speculative position limits on some agricultural futures. Ideas that new initiatives from CFTC could limit fund buying led to speculative selling.
However, the market's downside was limited by lingering planting delays and slow emergence rates. The U.S. Department of Agriculture, in its weekly crop progress report on Monday, said 32% of the U.S. soybean crop was emerged, up from 12% last week but down from the average of 55%. It said 69% of the soybean crop was planted, up from 52% last week but down from the five-year average of 81%.
July soybeans settled 6 cents lower at $13.59 1/2 and November soybeans ended 4 3/4 cents lower at $13.53 3/4. July soymeal settled $4.00 higher at $347.00 per short ton. July soy oil finished 66 points lower at 61.04 cents per pound.
MUSTARD SEED
Mustard seed futures is trading lower supported by the losses in domestic soybean and global edible oil markets. The selling pressure in the physical markets is also reported to be higher, with players worried over long-term gains. However, the prospect of rise in fuel prices is limiting the losses.
The arrival of monsoon in the Indian mainland has affected the sentiments. A normal monsoon would result in a record khariff oilseed production as area under oilseeds would increase sharply and affect the long-term gains in mustard seed.
Most active mustard seed July futures on NCDEX is trading lower at Rs. 633.00 [- 3.45] per 20 kg with 41,150 tonnes traded.
The regional markets are down with August contract at Sirsa and Hapur quoting at Rs. 558.90 [- 0.10] and Rs. 613.30 [- 0.50] per 20 kg respectively.
CASTOR SEED
Castor seed futures is trading marginally higher in thin trading. Castor seed July contract at NCDEX is trading higher at Rs. 527.60 [+ 0.50] per 20 kg with 50 tonnes traded. The regional markets are also up with September contract at Rajkot quoting at Rs. 2,768.00 [+ 3.00] per 100 kg.