Mumbai - Indian vegetable oilseed futures were trading lower with profit-booking of yesterdays sharp late gains being seen supported by the reduction of gains in US soy complex, crude oil in overnight trading and selling pressure in the local markets.

The Malaysian palm oil futures has ended the morning session tad down with profit-booking of yesterdays very sharp gains being seen. The US soy complex closed mixed overnight with only soy oil closing moderately up. The complex is trading higher currently with December soy oil and November soybean quoting up by 14 points and 5 cents on e-CBOT.

The energy markets closed tad up overnight after being pulled very sharply in both directions in the electronic session with October crude oil at the New York Mercantile Exchange settling up by $ 0.72 at 97.88 a barrel. It is trading up currently with the contract quoting up by $ 0.14 a barrel.

Indian soybean futures are trading lower with profit-booking of yesterdays more than 3% late gains being seen in response to the lack of major gains in global edible oil and energy markets. The improvement in arrivals and pressure from sellers to take advantage of yesterdays improvement in prices are pressurizing the cash markets too.

Very strong gains were witnessed in the Indian markets towards closing yesterday, which resulted in the soybean market settling up by 3%. However, US soy and crude oil markets lost most of the gains made in yesterdays electronic session during the floor trading hours. This is forcing the Indian market to also correct.

In addition, selling pressure is being seen in the cash markets with sellers trying to take advantage of the current relatively high prices. New arrivals have also improved with Madhya Pradesh and Maharashtra reporting arrivals of 25,000 bags and 30,000-35,000 bags respectively. [1 bag=90-100 kg]

However, the losses are limited by gains in crude oil, US soy complex and expectation of gains in Malaysian palm oil futures in the noon session. The firm festival demand in the cash markets are also helping to limit the losses.

The October soybean contract at National Commodity Derivatives Exchange [NCDEX] is trading lower at Rs. 2,065.00 [- 35.50] per 100 kg with 22,220 tonnes traded. November contract at NCDEX is down at Rs. 1,922.00 [- 38.50] per 100 kg. The October contract at National Board of Trade [NBOT] is down at Rs. 2,068.00 [- 29.50] per 100 kg.

October CPO at Multi Commodity Exchange of India is trading lower at Rs. 332.00 [- 4.10] per 10 kg with 450 tonnes traded.

Crude Palm Oil [CPO] futures on Bursa Malaysia Derivatives [BMD] has ended the morning session tad down with short-covering of yesterdays very sharp gains being seen. However, the gains in US crude oil and soy oil have limited the losses.

The benchmark December contract has ended the morning session tad down at MYR 2,179.00 [- 6.00] a tonne with 4,321 lots traded. [MYR=Malaysian Ringitt] [1 lot=25 tonnes]

The US soy complex closed mixed on Thursday with soybean, soymeal closing down on speculative long-liquidation due to the problems in the financial markets and lack of fresh fundamental news. However, soy oil managed to close higher with short-covering of recent losses seen due to earlier sharp gains in Malaysian palm oil futures.

November soybeans ended 23 cents lower at $11.16 a bushel. December soymeal settled $8.90 lower at $313.80 per short ton. December soy oil finished 48 points higher at 44.90 cents per pound.

MUSTARD SEED

Mustard seed futures is trading down with profit-booking of yesterdays limit up gains being seen, supported by the overnight reduction of gains in US crude oil and soy complex. Selling pressure is being seen in cash markets to take advantage of yesterdays sharp rise in prices. However, the losses are limited by the tight stock situation of rapeseed and firm demand from crushing unit to meet the festival requirement of consumers.

Most active mustard seed November futures on NCDEX is trading lower at Rs. 567.50 [- 7.40] per 20 kg with 15,680 tonnes traded. The regional markets are down with November contract at Hapur quoting at Rs. 637.50 [- 1.00] per 100 kg.

CASTOR SEED

Castor seed futures closed is trading tad down with the sentiments affected by the losses in edible oilseeds. The overall bearish tone on account of the favourable rains in Gujarat, increase in acreage and expectation of crop exceeding previous years levels are also supporting the selling.

Meanwhile, losses are limited by weak Rupee at close to 46.5 levels and expectation of market facing a supply crunch for a couple of months if export demand increases as the new crop will be delayed to the late sowing.

Most active castor seed October futures on NCDEX is trading lower at Rs. 611.90 [- 2.30] per 20 kg with 50 tonnes traded.