Oilseeds up on spec. gains, US soy
31 May 2008 11:04 am
Mumbai, May 31 - Indian vegetable oilseed futures is trading higher on speculative buying, supply tightness and overnight, strong gains in the US soy markets.
The US soy complex has ended sharply higher overnight on technical correction, Argentina concerns and planting delays, which is supporting the gains in the Indian markets. Crude oil too recovered moderately overnight. Malaysian palm oil futures closed lower on Friday night on profit-booking.
Meanwhile, heavy speculative buying is continuing in the domestic futures markets on anticipation of a prospective ban on futures trading in sugar, rapeseed, soybean and corn. A few traders are pushing up prices on speculation that when government bans futures in these commodities, it will ask exchanges to settle their contracts on the basis of prices on the last trading session and not prices in the physical market. The same practice was followed when Government suspended futures trading recently in soy oil, potato, chana and rubber.
Inflation was reported to have risen yesterday to a fresh 45-month high of 8.1% for the week ending May 17. Further gains are also expected as the Government would be forced to hike fuel prices, which would evidently get passed on to all commodities. The market is speculating that political pressure may lead to Government banning futures trade in more essential commodities.
Supply tightness is evident in the local markets on account of very minimal arrivals in soybean and tension prevailing in Rajasthan due to the Gujjar strike. However, many players who have been caught off-guard by yesterdays late gains in the markets are attributing the gains to heavy speculative buying.
Soybean arrivals today are reported to be around 50,000 bags in Madhya Pradesh and it is being traded around Rs. 2,500 for 100 kg in the physical markets. However, very limited trading is being witnessed due to the low arrivals and high prices. At the same time, the gains in soy oil are more limited with refined soy oil at Indore quotinf at Rs. 605 for 10 kg [without tax].
The most active July soybean contract at National Commodity Derivatives Exchange [NCDEX] at 11.05 hours is trading higher at Rs. 2,492.00 [+ 18.50] per 100 kg with 22,490 tonnes traded. June soybean at National Board of Trade [NBOT] is up at Rs. 2,491.50 [+ 18.50] per 100 kg.
The US soy complex closed higher on Friday night on technical re-bound after Thursdays sharp fall, lingering concerns for Argentina farmers' strike and the uncertainty of 2008 soybean acreage and output. Moderate recovery in crude oil was also supportive.
July soybeans settled 40 3/4 cents higher at $13.63 1/2 and November soybeans ended 33 cents higher at $13.54 1/2. July soymeal settled $9.70 higher at $341.50 per short ton. July soy oil finished 101 points higher at 61.31 cents per pound.
Crude Palm Oil [CPO] at the Bursa Malaysia Derivatives [BMD] closed down on Friday with benchmark August contract settling at MYR 3,498.00 [- 67.00] a tonne with 7,548 lots traded. [MYR=Malaysian Ringitt][1 lot=25 tonnes]
MUSTARD SEED
Mustard seed futures is trading higher supported by the gains in domestic soybean and recovery in US soy complex overnight. Speculative buying is still being seen in the market. However, exit by players with loss-making positions is limiting the gains.
Supply concerns due to the ongoing strike by Gujjars in Rajasthan are also supporting the gains. Market players are reporting that strike by Gujjars has sharply reduced the transaction in the mandis, crushing, processing activities and badly affected the transportation of mustard oil.
Most active mustard seed July futures on NCDEX is trading higher at Rs. 644.90 [+ 2.45] per 20 kg with 38,770 tonnes traded.
The regional markets are up with August contract at Sirsa and Hapur quoting at Rs. 558.60 [+ 0.60] and Rs. 614.30 [+ 3.20] per 20 kg respectively.
CASTOR SEED
Castor seed futures is trading higher with fresh buying continuing as the huge basis between futures and spot has narrowed. Castor seed June contract at NCDEX is trading higher at Rs. 525.00 [+ 0.40] per 20 kg with 50 tonnes traded.
Regional markets are trading higher with June contract at Rajkot quoting at Rs. 2,622.00 [+ 3.00] per 100 kg.
31 May 2008 11:04 am
Mumbai, May 31 - Indian vegetable oilseed futures is trading higher on speculative buying, supply tightness and overnight, strong gains in the US soy markets.
The US soy complex has ended sharply higher overnight on technical correction, Argentina concerns and planting delays, which is supporting the gains in the Indian markets. Crude oil too recovered moderately overnight. Malaysian palm oil futures closed lower on Friday night on profit-booking.
Meanwhile, heavy speculative buying is continuing in the domestic futures markets on anticipation of a prospective ban on futures trading in sugar, rapeseed, soybean and corn. A few traders are pushing up prices on speculation that when government bans futures in these commodities, it will ask exchanges to settle their contracts on the basis of prices on the last trading session and not prices in the physical market. The same practice was followed when Government suspended futures trading recently in soy oil, potato, chana and rubber.
Inflation was reported to have risen yesterday to a fresh 45-month high of 8.1% for the week ending May 17. Further gains are also expected as the Government would be forced to hike fuel prices, which would evidently get passed on to all commodities. The market is speculating that political pressure may lead to Government banning futures trade in more essential commodities.
Supply tightness is evident in the local markets on account of very minimal arrivals in soybean and tension prevailing in Rajasthan due to the Gujjar strike. However, many players who have been caught off-guard by yesterdays late gains in the markets are attributing the gains to heavy speculative buying.
Soybean arrivals today are reported to be around 50,000 bags in Madhya Pradesh and it is being traded around Rs. 2,500 for 100 kg in the physical markets. However, very limited trading is being witnessed due to the low arrivals and high prices. At the same time, the gains in soy oil are more limited with refined soy oil at Indore quotinf at Rs. 605 for 10 kg [without tax].
The most active July soybean contract at National Commodity Derivatives Exchange [NCDEX] at 11.05 hours is trading higher at Rs. 2,492.00 [+ 18.50] per 100 kg with 22,490 tonnes traded. June soybean at National Board of Trade [NBOT] is up at Rs. 2,491.50 [+ 18.50] per 100 kg.
The US soy complex closed higher on Friday night on technical re-bound after Thursdays sharp fall, lingering concerns for Argentina farmers' strike and the uncertainty of 2008 soybean acreage and output. Moderate recovery in crude oil was also supportive.
July soybeans settled 40 3/4 cents higher at $13.63 1/2 and November soybeans ended 33 cents higher at $13.54 1/2. July soymeal settled $9.70 higher at $341.50 per short ton. July soy oil finished 101 points higher at 61.31 cents per pound.
Crude Palm Oil [CPO] at the Bursa Malaysia Derivatives [BMD] closed down on Friday with benchmark August contract settling at MYR 3,498.00 [- 67.00] a tonne with 7,548 lots traded. [MYR=Malaysian Ringitt][1 lot=25 tonnes]
MUSTARD SEED
Mustard seed futures is trading higher supported by the gains in domestic soybean and recovery in US soy complex overnight. Speculative buying is still being seen in the market. However, exit by players with loss-making positions is limiting the gains.
Supply concerns due to the ongoing strike by Gujjars in Rajasthan are also supporting the gains. Market players are reporting that strike by Gujjars has sharply reduced the transaction in the mandis, crushing, processing activities and badly affected the transportation of mustard oil.
Most active mustard seed July futures on NCDEX is trading higher at Rs. 644.90 [+ 2.45] per 20 kg with 38,770 tonnes traded.
The regional markets are up with August contract at Sirsa and Hapur quoting at Rs. 558.60 [+ 0.60] and Rs. 614.30 [+ 3.20] per 20 kg respectively.
CASTOR SEED
Castor seed futures is trading higher with fresh buying continuing as the huge basis between futures and spot has narrowed. Castor seed June contract at NCDEX is trading higher at Rs. 525.00 [+ 0.40] per 20 kg with 50 tonnes traded.
Regional markets are trading higher with June contract at Rajkot quoting at Rs. 2,622.00 [+ 3.00] per 100 kg.