Mumbai - Indian vegetable oilseeds and oil complex were trading lower Thursday with the market booking profits from the sharp gains made yesterday. The global markets are also quoting sharply lower, which is also supporting the selling in the domestic markets.

The Malaysian palm oil market is closed today and tomorrow. US soy complex had closed lower overnight and is trading sharply down currently, with March soy oil on e-CBOT quoting lower by 74 points. The energy markets are also quoting lower with March crude oil on New York Mercantile Exchange trading lower at around $ 87 a barrel currently.

The domestic markets had seen late heavy speculative buying yesterday, which resulted in sharp gains in soy oil and mustard seed towards closing. The market was reacting to some rumours as there was no major change in the fundamental scenario. This along with the heavy losses in the global markets is prompting the market to book profits now.

The domestic current stock situation is adequate, though the fresh arrivals of khariff oilseeds have sharply reduced. However, huge stocks are present with very large players, who are not interested to liquidate in a hurry. This has reduced the selling pressure in the physical markets. At the same time, the domestic markets are largely mirroring the movements in the international markets, which are expected to be highly volatile, till the US Department of Agricultures crop reports are released on Friday night.

The most active March soybean contract at National Commodity Derivatives Exchange [NCDEX] at 11.00 hours is trading lower at Rs 2,146.00 [- 17.50] per 100 kg with 28,790 tonnes traded.

At NCDEX the soy oil March contract is trading lower at Rs. 610.30 [- 2.15] per 10 kg with 15,060 tonnes traded. The March contract at the National Board is down at Rs. 610.60 [- 1.20] per 10 kg, while the same month contract at the Multi Commodity Exchange of India Ltd [MCX] is trading lower at Rs. 610.10 [- 1.90] per 10 kg with 5,770 tonnes traded.

The US soy complex closed lower on Wednesday night after a session of volatile trading, as lack of fresh buying interest pushed down the market from early limit-up gains. The lack of any fresh supportive news, re-tracking of gains in wheat, corn and recessionary fears prompted the market to book profits from early sharp gains. However, fears over 2008 US soy acreage, tightening long-term supply and uncertain South American crop are keeping the long-term situation still bullish.

March soybeans ended 4 1/2 cents lower at $13.18 1/2, July soybeans finished 3 1/4 cents lower at $13.51 3/4 and November soybeans ended 10 1/2 cents lower at $12.79 1/2. March soymeal settled $1.30 lower at $351.80 per short ton. March soyoil finished 24 points lower at 55.16 cents per pound.

Crude Palm Oil [CPO] futures at the Bursa Malaysia Derivatives [BMD] closed moderately up on Wednesday with active April contract closing at MYR 3,385.00 [+ 36.00] a tonne. [MYR=Malaysian Ringitt]

MUSTARD SEED

Mustard seed futures is trading lower affected by the losses in the domestic soy complex. Profit-booking is also being seen after yesterdays sharp gains. Some correction was expected yesterday itself as no major change in fundamentals has been reported in the mustard seed market.

Token arrivals are reported to have commenced in Rajasthan. While, trade is anticipating the upcoming production to be in the range of 4.5-5 million tonnes, the Government is anticipating an above 5.0 million tonnes crop.

Most active mustard seed May futures on NCDEX is trading lower at Rs. 549.45 [- 1.65] per 20 kg with 30,010 tonnes traded.

The regional platforms are trading lower with the active May 08 contract at Sirsa and Hapur quoting at Rs. 485.40 [- 0.10] and Rs. 551.90 [- 0.90] per 20 kg respectively.

CASTOR SEED

Castor seed futures is trading higher with the active physical market and average arrivals supporting the gains. The continuing cold wave is expected to slow down the harvesting and reduce arrivals. However, late profit-booking is expected from yesterdays sharp gains.

The March castor seed contract on NCDEX is trading higher at Rs. 466.50 [+ 2.00] per 20 kg with 560 tonnes traded.

The regional platforms are trading lower with the active March 08 contract at Rajkot quoting at Rs. 2,331.00 [- 2.00] per 100 kg.