Mumbai, Oct 31 - The Indian vegetable oilseed and oil futures have opened mixed. While the global losses are pressurizing the markets, good domestic demand and slow release of stocks by importers are supporting the gains. The tight stock situation and good demand scenario in mustard seed and castor seed are helping them to trade positively. The sharp fall in US crude oil prices overnight, has resulted in liquidation in the global edible oil markets, which had been driven to record-highs in the beginning of the week. Demand, which is lesser than expected, is also affecting the palm oil market at Malaysia.

The fall in global edible oil prices can be expected to reduce the risk-fear in the minds of Indian edible oil importers. The release of stock can also be expected to increase, especially with Govt. run State Trade Corporation [STC] already floating a tender to import 12,000 tonnes of palm oil by November 15 to ease the supply situation within the country.

However, the festival demand continues to be good and the Indian prices are still low cpompared to the global prices. The palm oil imports by STC would also be reaching India after the Diwali demand is over. These factors have helped soy oil to recover marginally, after opening significantly lower.

The strong domestic arrivals can be expected to exert influence on the prices today, despite the good demand from plants. The soybean arrivals are heavy at around 12-13 lakh bags currently as farmers are liquidating stocks attracted by the high prices. They are also in requirement of cash prior to the Diwali festival.

The most active December soybean contract at National Commodity Derivatives Exchange [NCDEX] at 10.30 hours is trading lower at Rs 1,747.00 [- 3.50] per 100 kg with 20,350 tonnes traded.

At NCDEX the soy oil November contract is trading higher at Rs. 505.45 [+ 1.05] per 10 kg with 9,410 tonnes traded. The November contract at the National Board [NBOT] is up at Rs 505.50 [+ 0.50] per 10 kg, while the same month contract at Multi Commodity Exchange of India Ltd [MCX] is trading higher at Rs. 505.20 [+ 0.85] per 10 kg with 2,240 tonnes traded.

Crude Palm Oil [CPO] at the Bursa Malaysia Derivatives [BMD] has ended the morning session lower affected by lesser than expected October 1-31 Malaysian palm oil data from Intertek and overnight losses in US soy oil and crude oil. The buying interest in the physical market is also less, as traders are anticipating further fall in prices.

The sharply high prices are expected to have lowered the demand, resulting in lesser than expected exports. The market is now waiting for data from SGS, Malaysia, which will be released in the afternoon.

The benchmark January contract has ended the morning session lower at MYR 2,821.00 [- 41.00] a tonne with 8,025 lots traded.

The CBOT soy complex closed sharply lower on Tuesday night as weak US Dollar, sharp fall in crude oil and month-end profit-booking resulted in heavy liquidation by all type pf participants. The favourable weather for US harvesting and Brazil soy sowing also supported the selling.

November soybeans settled 17 1/4 cents lower at $9.63 and January soybeans ended 19 1/2 cents lower at $10.09 . December soymeal settled $5.3 lower at $274.7. December soyoil finished 52 points higher at 41.68.

MUSTARD SEED

Mustard seed futures opened higher, with the current supply situation preventing sustained fall in the market. The recovery in the domestic soy complex despite the fall in the global markets, is also supporting the gains.

Mustard seed market is currently passing through a bullish phase as a result of good demand, tight stock situation and anticipation of reduction in rabi acreage. The sowing of mustard is reported to be slow. Though winter is near, the days are still hot, making conditions unfavourable for mustard sowing. The industry experts at the kharif convention organized by COOIT at Nagpur had also reiterated their fear of mustard acreage shifting to wheat.

Most active mustard seed December futures on NCDEX is trading higher at Rs. 484.30 [+ 3.15] per 20 kg with 7,730 tonnes traded.

The regional platforms are trading higher with the active November contract at Sirsa and Hapur quoting at Rs 429.70 [+ 0.50] and Rs 498.80 [+ 1.90mmy] per 20 kg respectively.

CASTOR SEED

Castor seed futuresopened positively as the sentiments continue to be bullish in the near-term as a result of the supply tightness in castor seed.

Most active castor seed December futures on NCDEX is trading higher at Rs. 413.20 [+ 1.20] per 20 kg with 20 tonnes traded.

Trading has not commenced in the regional platforms.