Mumbai - Indian vegetable oilseed futures were trading mixed Monday with mustard seed markets seeing profit-booking on speculation of ban on futures trading in mustard seed. At the same time, global markets are seeing strong gains on account of highly bullish fundamental reports, which is supporting gains in soybean.

Malaysian palm oil futures has ended the morning session sharply up at just below MYR 3,600 a tonne at a 24 day high on gains in soy oil and strong gains in May 1-10 exports. The US soy complex closed sharply up on Friday night overnight on highly bullish outlook presented by US Department of Agriculture [USDA] for 2008-09 soy marketing season. The gains are continuing currently too in US soy complex with July soy oil and July soybean quoting up by 40 points and 10 cents respectively.

A senior official from the Finance Ministry is reported to have commented on a possible ban on futures trading in rapeseed, which has set off profit-booking of recent gains in rapeseed. However, no official quote has been reported in this regard.

The global markets are reacting sharply to fundamental reports that are indicating tightening projected ending stocks and increase in demand. The soaring crude oil prices are also supportive on anticipation of increase in utilization of oilseeds for bio-diesel purposes. Crude oil at the New York Mercantile Exchange is currently trading at $ 125.60 a barrel.

The USDA on Friday estimated U.S. 2007-08 soybean ending stocks at 145 million bushels, down 15 million from 160 million bushels estimated in April. The USDA also estimated U.S. 2008-09 soybean ending stocks at 185 million bushels, below the average analysts estimate of 273 million tonnes. This set off a buying spree in the global markets.

The domestic soybean market is also responding to the bullish outlooks presented for 2008-09 edible oil marketing season. Despite, Indian market too expecting an increase in production in 2008-09 oilseed production, the tight global supply-demand scenario would pressurize the prices.

However, today arrivals of 70,000-80,000 bags [1 bag=90 kg] has been reported for soybean, which is pressurizing the physical markets. The speculation of a possible ban on futures trading is also affecting the sentiments.

The most active June soybean contract at National Commodity Derivatives Exchange [NCDEX] at 10.20 hours is trading higher at Rs. 2,336.00 [+ 11.00] per 100 kg with 5,880 tonnes traded. May soybean at National Board of Trade [NBOT] is trading higher at Rs. 2,336.50 [+ 10.50] per 100 kg.

Crude Palm Oil [CPO] at the Bursa Malaysia Derivatives [BMD] has ended the morning session sharply up on strong gains in US soy oil, crude oil, tightening US soy stocks and improvement in exports.

Cargo surveyor Intertek Agri Services said on Saturday that Malaysias palm oil exports have risen by 34.5% on month during the May 1-10 period to 4,09,238 tonnes. The figures are slightly above traders expectations of around 4,05,000 tonnes.

The Malaysian Palm Oil Board released its April monthly report after the end of morning session. The report is also positive and can be expected to result in more gains in palm oil in the noon session. Malaysias April palm oil production has increased by 2.47% to 1.32 million tonnes and exports have picked up by 1.1% to 1.26 million tonnes. At the same time, ending stocks have fallen by 1.97% to 1.79 million tonnes. While, traders were anticipating a 3-6% increase in production, the ending stocks were expected to be almost unchanged at around March level of 1.82 million tones.

The benchmark July contract has ended the morning session at MYR 3,590.00 [+ 95.00] a tonne with 4,144 lots traded. [MYR=Malaysian Ringitt][1 lot=25 tonnes]

The US soy complex closed sharply up on Friday night as the market soared on highly bullish USDA report. The tight stocks have increased the importance of 2008 production. The market is increasing buying on concerns over low germination rates in soybean seeds this year, question of yields amid planting delays and wet, cool conditions.

May soybeans settled 51 1/4 cents higher at $13.49 1/2, July soybeans finished 48 cents higher at $13.58 and November soybeans ended 58 cents higher at $13.03 3/4. July soymeal settled $3.30 higher at $338.50 per short ton. July soy oil finished 245 points higher at 62.00 cents per pound.

MUSTARD SEED

Mustard seed futures is trading down on speculation of a possible ban on futures trading. A senior official from the Finance Ministry is reported to have commented about a possible ban on futures trading in rapeseed, which has set off a selling spree. However, the strong gains in the global edible oil markets are limiting the losses. The mustard seed fundamentals are also supportive on account of strong demand in the physical markets with market worried over shortage when the arrivals fall. Arrivals this week are expected to be steady at around last weeks levels of 90,000 1,30,000 bags. [1 bag = 85 kg]

Most active mustard seed July futures on NCDEX is trading lower at Rs. 606.80 [- 3.05] per 20 kg with 20,650 tonnes traded.

The regional markets are down with August contract at Sirsa and Hapur quoting at Rs. 538.50 [- 3.50] and Rs. 595.00 [- 4.30] per 20 kg respectively.

CASTOR SEED