Boiling News & Veg Oils ,crude

Mumbai edible oil prices - June 06
6 Jun 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
05/06/08 06/06/08 Change
Sunflower oil Exp
650 640 -10
oil Ref
710 700 -10
Groundnut oil
705 705 -
RBD Palmolein
574 578 +4
Cottonseed oil ref
617 620 +3
Mustard oil
632 637 +5
Ref Soy oil
630 635 +5

Oil's biggest day yet drags down stocks
Friday June 6, 6:55 pm

Oil prices make biggest single-day leap; Dow Jones tumbles nearly 400 points

NEW YORK -- Oil prices made their biggest single-day leap ever Friday, dragging the Dow Jones industrials down nearly 400 points and raising the once-unthinkable prospect of $150 oil and more record gas prices by the Fourth of July.
The meteoric rise of nearly $11 for the day piled atop an increase of almost $5.50 the day before, taking oil futures more than 13 percent higher in just two days, easily a record on the New York Mercantile Exchange.

And those weren't the only stunning numbers of the day: The government also reported the nation's unemployment rate zoomed to 5.5 percent in May, a monthly rise of half a percentage point, the biggest in 22 years.

Oil settled at $138.54, a rise of more than 8 percent. The surged came after Morgan Stanley analyst Ole Slorer predicted strong demand in Asia and tight supplies in the Western Hemisphere could drive prices to $150 by Independence Day, when millions of Americans take to the roads.

That means no end in sight for spiraling gas prices, already above $4 per gallon in much of the country.

Even longtime market observers were shocked by the magnitude and speed of oil's rally.

"We're into unchartered territory, and somewhat off the map as far as historical precedents are concerned," said Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates in Galena, Ill.

Besides the jump in the unemployment rate, the Labor Department said employers had cut 49,000 jobs in May, the fifth straight month of nationwide losses. Job losses for the year reached 324,000.

The White House said President Bush was considering further plans to help energize the economy, already teetering on the edge of recession and crippled by a tumbling housing market and other factors.

On Wall Street, the Dow plunged 394.64 points, more than 3 percent, to close at 12,209.81, the biggest drop in more than 15 months in both percentage and points terms.

Wall Street had managed to shrug off oil's advance on Thursday but succumbed to extreme anxiety Friday.

The stock market's great concern of late has been whether consumers would curb their spending on non-essentials as they were forced to pay more for gas and other staples.

The previously unthinkable idea of $150 oil, and gasoline that will keep climbing above $4, made it clear to investors that consumers would be forced to be even more conservative than they have been in recent months.

Before Thursday, oil had receded nearly $13 a barrel from its highs, a respite from its nearly record-every-day march. But the end of the week sent it right back up again.

The burst in oil prices also raised the prospect of accelerating inflation by adding to already strained transportation costs -- which will send prices higher throughout the economy.

Light, sweet crude for July delivery officially finished the day at $138.54, up $10.75 on the Nymex. But after the settlement, the contract jumped as high as $139.12. Prices hit a previous record of $135.09 a barrel on May 22, and settled Thursday at $127.79.

Traders also zeroed in on remarks by an Israeli Cabinet minister who was quoted as saying his country will attack Iran if it doesn't abandon its nuclear program. Transportation Minister Shaul Mofaz added that Iranian President Mahmoud Ahmadinejad "will disappear before Israel does," the Yediot Ahronot daily reported.

Iran is the second-biggest oil producer in the Organization of Petroleum Exporting Countries, and traders worry that any conflict with Israel could disrupt global supplies.

A further weakening of the dollar also helped send oil prices higher by enticing overseas buyers armed with stronger currencies and others looking for a hedge against the greenback. But it also represented a stampede by bullish traders and optimistic computer models betting that prices still have further to rise.

"The bulls ... refuse to go away," said Stephen Schork, an analyst and trader in Villanova, Pa.

Meanwhile, U.S. gas prices at the pump continued to hover just shy of an average $4 a gallon, easing only 0.3 cent from Thursday's record.

Drivers are now paying an average of $3.99 for a gallon of regular gas nationwide, according to AAA and the Oil Price Information Service; in many parts of the country, consumers are already paying well over $4. Retail diesel slipped a penny overnight to $4.76.

Pump prices are bound to rise even further if oil sustains its advance. James Cordier, president of Tampa, Fla.-based trading firm Liberty Trading Group, predicted prices could rise to $4.25 as early as the end of the month.

"Unfortunately, drivers cutting back isn't going to lower the price of gasoline anytime soon," he said.

The dramatic reversal in what had been a weakening oil market began Thursday after ECB President Jean-Claude Trichet suggested the bank could raise interest rates and the euro climbed against the dollar. When interest rates rise in Europe, or fall in the U.S., the dollar tends to weaken against the euro.

Many traders buy commodities such as oil as a hedge against inflation when the dollar is falling, and a weaker dollar makes oil cheaper for investors dealing in other currencies. Analysts believe the dollar's protracted decline has been a major reason why oil prices have nearly doubled in the past year.

The euro strengthened further against the greenback Friday. A Labor Department report showing the U.S. unemployment rate jumped half a percentage point to 5.5 percent last month -- its biggest monthly increase since 1986 -- could drag the dollar even lower in the days ahead.

"Unemployment jumping as it did today will be in the market for a long time and will continue to pressure the U.S. dollar," Cordier said.

The influx of so much fresh money into the energy markets has caught the attention of federal watchdogs. The U.S. Commodity Futures Trading Commission recently said it was six months into a probe of U.S. oil markets focused on possible price manipulation.

Asked about Friday's surge, CFTC spokesman R. David Gary said: "People are aware of what's happening and are monitoring the markets closely, but beyond that there is no comment."

In other Nymex trading, heating oil futures jumped 29.32 cents to settle at $3.974 a gallon, while gasoline prices rose 21.35 cents to settle at $3.548 a gallon. Natural gas futures rose 17.4 cents to settle at $12.693 per 1,000 cubic feet.

In London, July Brent crude shot up $10.15 to settle at $137.69 a barrel on the ICE Futures exchange.

Oilseeds end higher on global gains
6 Jun 2008 5:48 pm

Mumbai - Indian vegetable oilseed futures closed higher largely supported by strong gains in global edible oil markets and recovery in crude oil. The gains were reduced by bearish domestic fundamentals on account of the progress of rains and further rise in inflation.



Malaysian palm oil futures closed higher at an 8-day high taking cues from strong overnight and current gains in US soy oil and crude oil. The US soy complex had made very sharp gains overnight and the gains continued during the Asian trading hours. July soy oil and July soybeans were quoting up by 73 points and 8.50 cents respectively on e-CBOT when the Indian markets closed.



Heavy buying was seen in crude oil overnight, with the market making highest-ever single day gain in dollar-terms. Light, sweet crude for July delivery was trading higher at $ 129.70 a barrel when the Indian edible oil markets closed.



The domestic markets also made gains in response to the gains in the global edible oil markets. The strong recovery in crude oil was also supportive as it can result in increased diversion of edible oils to bio-fuels. However, the gains were limited in the domestic futures markets by the dull demand in the cash markets due to the pre-monsoon showers and rise in inflation.



Pre-monsoon showers were reported in parts of Madhya Pradesh too today announcing the arrival of rains. Heavy rains were at the same time reported in almost all areas of Maharashtra. These two states are the major producers of soybean and together contribute around 80% of the total production. The local industry is expecting India’s soy acreage to rise to a record 10 million hectares this season due to the good returns received last year.



According to data released today, India’s inflation rose further to 8.24% in week ending May 29 above previous week’s 8.10%. Higher fuel prices are expected to send it to a 13-year peak early next month. RBI Governor Y.V. Reddy said on Thursday the central bank was ready to employ the full range of instruments at its disposal to turn round inflation.



The most active July soybean contract at National Commodity Derivatives Exchange [NCDEX] closed higher at Rs. 2,463.00 [+ 24.00] per 100 kg with 66,140 tonnes traded. June soybean at National Board of Trade [NBOT] ended up at Rs. 2,471.50 [+ 13.50] per 100 kg.



Crude Palm Oil [CPO] at the Bursa Malaysia Derivatives [BMD] closed higher supported by the strong overnight gains in US soy oil and crude oil. However, the market after opening up by MYR 100 a tonne had to concede some gains to profit-booking.



An executive with the United Nations Food and Agriculture Organization said Asia’s palm oil stocks might rise 16% on year to 5 million tonnes in the marketing year ending in September 2008 on the back of large production gains.



The benchmark August contract closed higher at MYR 3,600.00 [+ 72.00] a tonne with 7,798 lots traded. [MYR=Malaysian Ringitt][1 lot=25 tonnes]



The US soy complex closed sharply up on Thursday night with soybean rallying to a 3-month high worried over continuing wet weather and possible reduction in acreage. The planting and emergence delay was also supportive with market speculating that delay in sowing can lead to reduction in yields. The supply disruption due to strike in Argentina and sharp gains in crude oil also led to heavy fund-buying, which supported the gains.



July soybeans soared 63 cents to $14.52 per bushel, and November soybeans surged 52 1/4 cents to $14.32. July soymeal closed up $13.50 at $373.50 per short ton, and July soy oil closed up 218 points at 62.65 cents per pound.



MUSTARD SEED



Mustard seed futures closed higher supported by the gains in the domestic soybean and heavy gains in the global edible oil and crude oil markets. The dip in arrivals and good demand were also supportive. However, the progress of monsoon and rise in inflation dampened the sentiments. A normal monsoon would result in a record khariff oilseed crop due to increase in acreage and would affect the long-term prospects of mustard seed.



Most active mustard seed July futures on NCDEX closed higher at Rs. 643.95 [+ 2.50] per 20 kg with 1,30,310 tonnes traded.



The regional markets ended up with August contract at Sirsa and Hapur settling at Rs. 564.00 [+ 1.00] and Rs. 619.90 [+ 0.70] per 20 kg respectively.



CASTOR SEED



Castor seed futures closed higher with the advancement of monsoon affecting the sentiments. Rains have largely covered Andhra Pradesh, which is a major producer of castor seed and sowing activities would soon commence here. The good stock situation, strong arrivals also affected the sentiments.



Castor seed July contract at NCDEX closed higher at Rs. 529.90 [- 4.00] per 20 kg with 670 tonnes traded.



The regional markets ended down with September contract at Rajkot settling at Rs. 2,779.00 [- 28.00] per 100 kg.

MCX resumes CPO futures trade
6 Jun 2008 11:02 am

Mumbai - India's largest commodity bourse, the Multi Commodity Exchange (MCX), resumed trading in crude palm oil futures Friday, a senior exchange official said.

"We had halted trade in the commodity for a brief period to assess the specifications of the contract, as liquidity had not improved," said Joseph Massey, chief executive of the exchange.

The exchange has now revised many of the specifications, including the delivery center and the levy of taxes.

The new contract will have a delivery center in Kandla in the western state of Gujarat due to increased business in the port against the earlier delivery center at Kakinada in the southern state of Andhra Pradesh.

Massey expects the contract to garner good volumes despite traders having lost interest in trading in commodities futures after a suspension in soybean oil futures for four months.

"Of course, the risks are there in the market. However, volumes are picking up in mustard seed and mustard oil futures, so I expect the CPO contracts also to see some volumes," said Massey.

In May, India's Forward Markets Commission (FMC) suspended futures trading in refined soy oil, potatoes, chickpeas and rubber for at least four months to curb the rise in prices in spot markets.

Spot Soya oil prices - June 06
6 Jun 2008 1:11 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 06/06/08 05/06/08
Min Max Min Max
Mumbai 635 636 630 631
Indore 628 629 620 621
*Akola 658 659 655 656
Alwar 660 661 645 646
*Amravati 655 656 650 651
Bharatpur 660 661 645 646
Bundi 655 656 640 642
Chennai 645 646 635 640
Hyderabad 640 641 630 631
*Jalana 660 661 655 656
Kakinada 645 646 640 641
Kandla 635 636 635 636
*Kanpur 670 671 655 656
*Latur 660 661 650 651
Manglore 640 641 637 638
*Nagpur 670 680 666 672
*Nandad 658 659 648 649
Rajkot 625 630 615 620
*Solapur 662 663 650 651

Spot Mustard oil prices - June 06
6 Jun 2008 1:09 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 06/06/08 05/06/08
Min Max Min Max
Mumbai 637 638 632 633
Alwar 628 629 624 625
Bharatpur 628 629 624 625
Bikaner 630 631 615 616
Bundi 625 626 622 623
Charkhi Dadri 663 664 645 646
*Delhi 672 673 654 655
Jaipur 635 636 625 626
Kanpur 690 700 670 671
Kota 630 631 620 621
Ludhiyana 655 656 645 646
Sriganganagar 645 646 631 633

Centre may increase ethanol price
6 Jun 2008 4:53 pm

Singapore - The Indian government is likely to raise the fixed price of ethanol around 5 per cent-10 per cent in the coming months, or up to Rs 24 per liter from Rs 21.50/ltr currently, a senior industry association official said Thursday.

The current price of ethanol was fixed when crude oil was trading at around USD60 per barrel, and it is now trading above USD120 per barrel.

"The higher price of ethanol will encourage more output, which is necessary to hit India's mandatory 10 per cent biofuel blending target by October this year," the official said. The current level of mandatory blending is 5 per cent.

"There is no shortage of (feedstock for ethanol production) to meet the 10 per cent blending target as well as the needs of the chemical and liquor manufacturers," said the official, who declined to be named.

India produced a record 30 million tons of sugar in the crop year ending Sept. 30, 2007, and is projected to produce around 28.3 million tons in the current year, said the official.

Output in the 2008-09 crop year is projected lower around 24 million tons due to an expected decline in the area planted in sugarcane as farmers switch to more profitable crops such as wheat and rice.

Despite the lower sugar output, there will be adequate carryover stocks of molasses, a byproduct of sugar and a feedstock for ethanol production, to meet India's 10 per cent ethanol blending plan, he said.

Big energy consumers to gather in Japan as oil prices soar
6 Jun 2008 10:24 am

Tokyo - Eleven nations that guzzle nearly two thirds of the world's energy will hold talks in northern Japan this weekend, seeking ways to secure enough supply and reduce consumption as oil prices hit record highs.

The June 7-8 ministerial meeting in Aomori, some 600 kilometers north of Tokyo, brings together China, India, South Korea, and the Group of Eight (G8) industrialized nations.

Russia is the only big energy supplier among the 11 countries, whose total demand accounts for some 65% of what the world's needs, according to data by the Paris-based International Energy Agency (IEA).

Oil prices reached record peaks of USD135.14 a barrel in London and USD135.09 in New York on May 22, soaring fivefold since 2003 amid turbulence in the Middle East and rising demand in emerging economies.

The Aomori meeting will start Saturday with talks among five nations which consume half of the world energy -- the United States and Asia's largest economies of Japan, China, India and South Korea.

"As crude oil prices continue to rise abnormally, it will be an important opportunity to discuss how we should cope with the situation with a shared sense of crisis," Japan's industry minister Akira Amari said this week.

The five-nation meeting will discuss mainly "energy security," he told reporters.

Climate change will also be on the agenda for the 11 countries, which together release 65% of the carbon dioxide emissions blamed for global warming.

The climate will be a major issue when the leaders of the G8 hold a summit from July 7 to 9 in Japan's northern resort of Toyako.

A senior government official said that Japan, as the host of this weekend's meeting, hoped to encourage greater IEA cooperation with China and India, which both lag behind in emergency oil reserves despite growing consumption.

The official also said Japan hoped the meeting will note the importance of countries setting oil prices based on markets, rather than lowering them with subsidies.

"Developing countries such as China and India have been giving subsidies, which doesn't send a message of energy-saving and burdens their state coffers," the official said, requesting anonymity.

India's government on Wednesday hiked fuel prices after its state-run oil companies said they had been hit hard by the soaring global prices while having to sell fuels at heavily discounted prices.

The G8 energy ministers' meeting is set for Sunday, which will be followed by another round of talks later in the day with participation by China, India and South Korea.

The G8 groups Britain, Canada, Italy, France, Germany, Japan, Russia and the United States.

Besides energy security, the agenda at the 11-nation meeting will also include an initiative for international cooperation on energy saving and developing clean energy.

Japan, Europe and the United States have been discussing creating an "International Partnership for Cooperation on Efficient Energy" as a framework for exchanging information on energy-saving practices.

Amari earlier this month said that he wanted oil producers to share in the sense of crisis.

He voiced hope that "oil-producing countries not take an easy-going stance that the higher the prices are the higher their revenue is." The meeting comes on the heels of a high-level summit in Rome on addressing rising food prices, which have triggered riots in some countries and which experts blame in part on higher energy costs and the growing reliance on biofuels.

Oil shoots past record above $139 a barrel
7 Jun, 2008, 0908 hrs IST, AGENCIES

NEW YORK: Oil prices have shot up more than $11 to a new record above $139 after Morgan Stanley predicted prices would hit $150 by the fourth of July.

Oil's meteoric surge, which pushed prices more than 8 percent higher in a single day, added to a huge increase on Thursday to cap oil's biggest two-day gain in the history of the New York Mercantile Exchange. The burst higher -- which also came on rising Middle East tensions -- also raised the prospect of accelerating inflation by adding to already strained transportation costs.

That gloomy outlook sent stocks tumbling, taking the Dow Jones industrials nearly 400 points.

Light, sweet crude for July delivery jumped as high as $139.12 on the Nymex, before easing slightly to settle at $138.54, up $10.75. Prices hit a previous record of $135.09 a barrel on May 22, and settled Thursday at $127.79.

Brent crude on the ICE futures exchange settled $10.15 higher at a record $137.69 a barrel, after hitting an all-time high of $138.12 a barrel.

Prices pushed sharply higher yesterday after Morgan Stanley analyst Ole Slorer predicted strong demand in Asia could drive prices to $150 by Independence Day (July 4), when millions of Americans are expected to take to the roads. Slorer said shipments from the Middle East are mimicking patterns seen in the third quarter last year, when Morgan Stanley based an oil price spike prediction on falling supplies in the Atlantic.

Traders also zeroed in on remarks by an Israeli Cabinet minister, who was quoted as saying his country will attack Iran if it doesn't abandon its nuclear programme. Transportation Minister Shaul Mofaz added that Iranian President Mahmoud Ahmadinejad "will disappear before Israel does," the Yediot Ahronot daily reported.

Mumbai edible oil prices - June 07
7 Jun 2008 10:18 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
06/06/08 07/06/08 Change
Sunflower oil Exp
640 643 +3
oil Ref
700 705 +5
Groundnut oil
705 710 +5
RBD Palmolein
578 578 -
Cottonseed oil ref
620 630 +10
Mustard oil
637 646 +9
Ref Soy oil
635 641 +6