Mumbai - Indian vegetable oilseed futures are trading lower affected by the strong losses in global edible oil, energy markets and increase in arrivals of khariff oilseeds. However, firm demand in cash markets and ideas that prices have bottomed out are limiting the losses.

The Malaysia palm oil futures has ended the morning session down tracking overnight heavy losses in US soy oil and crude oil. The US soy complex fell sharply for the third successive session overnight. It is trading down currently too with December soy oil and November soybean quoting down by 37 points and 21.75 cents on e-CBOT.

The energy markets fell sharply overnight to a five month low with October contract at New York Mercantile Exchange settling down by $ 1.46 at $107.89 a barrel. However, it is steady in electronic trading with the October contract quoting up by $ 0.11 a barrel currently.

Indian oilseed futures are trading lower affected by the losses in the global edible oil markets. US soy oil has moved below 50 cents a pound level, which has turned the sentiments bearish in the global markets. The increase in new soybean arrivals, the approaching groundnut harvest in Gujarat, release of old stocks by stockists are also adding to the selling pressure.

However, weakness in the Indian Rupee to below 44 levels per US Dollar, expectation of festival demand remaining strong, ideas that prices have bottomed out are limiting the losses. A probable removal of ban in futures trading in soy oil is also supportive.

The arrivals of soybean in Maharashtra has picked up with harvesting of early sown soybean being seen. While, arrivals of soybean in Madhya Pradesh will be sown only from late September, the harvesting of early-sown groundnut in Gujarat has commenced. Soybean and groundnut are the major oilseeds harvested in khariff season and contribute to more than 85% of the total production in the season.

The market is expecting the resumption of futures trading in soy oil, rubber, potatoes and chickpeas as the drop in inflation will reduce pressure on the government to extend a four-month ban. A top official of the consumer affairs department has said that the department has not recommended for an extension in the ban. The ban is scheduled to end on September 6. However, even if the ban is removed the exchanges may need at least one month to resume trading as fresh approvals from the regulator are required.

Inflation has declined for a second week to 12.34% in the week ending August 23 easing from a peak of 12.63 % in the week ending Aug 9.

The October soybean contract at National Commodity Derivatives Exchange [NCDEX] at 10.15 hours is trading lower at Rs. 2,148.00 [- 15.50] per 100 kg with 5,850 tonnes traded. The September contract at National Board of Trade [NBOT] is down at Rs. 2,562.00 [- 12.50] per 100 kg.

October CPO at Multi Commodity Exchange of India is trading lower at Rs. 364.50 [- 5.10] per 10 kg with 280 tonnes traded.

Crude Palm Oil [CPO] at the Bursa Malaysia Derivatives [BMD] has ended the morning session significantly down affected by the sharp overnight losses in US soy oil and crude oil. Soy oil is down in after-hours trading too. However, the huge discount of around $ 450 a tonne with soy oil, ideas that prices have bottomed out and demand will pick up at current levels are limiting the losses.

The benchmark November contract has ended the session lower at MYR 2,465.00 [- 45.00] a tonne with 4,2843 lots traded. [MYR=Malaysian Ringitt][1 lot=25 tonnes]

The US soy complex closed sharply down on Thursday affected by the plunge in crude oil and strength in US Dollar. Rains in central Midwest region of US were also seen beneficial for late-developing soybean crops, which added to the weak tone. However, losses were limited on worry over crop losses in the U.S. Delta from heavy rains associated with remnants of former hurricane Gustav amid an already tight stock situation.

September soybeans settled 17 cents lower at $12.34 and November soybeans ended 16 1/2 cents lower at $12.35. December soymeal settled unchanged at $342 per short ton. December soy oil finished 100 points lower at 50.24 cents per pound.

MUSTARD SEED

Mustard seed futures is trading lower with profit-booking of yesterdays late gains being on account of the losses in global edible oil, energy markets, weakness in domestic soybean and commencement of arrivals of khariff oilseeds. However, the steady festival demand amid lack of selling pressure in the cash market is limiting the losses.

Most active mustard seed November futures on NCDEX is trading lower at Rs. 595.85 [- 2.85] per 20 kg with 6,680 tonnes traded. The regional markets are down with November contract at Hapur quoting at Rs. 645.50 [- 0.10] per 100 kg.

CASTOR SEED

Castor seed futures is trading tad up in this trading with some speculative buying being seen as the market is expecting the industry to face a significant stock shortage before the new arrivals commence from December in Andhra Pradesh. However, increase in acreage over previous year and current good condition of growing crops is expected to ensure that the situation will turn to surplus when new arrivals commence.

Most active castor seed October futures on N