Mumbai, Oct 16 The Indian oilseed and edible oil futures have opened sharply higher riding on the sharp gains in the global markets. The domestic fundamentals are being ignored in the current scenario, when global prices are at life-time highs.

The global underlying fundamentals are very bullish currently, with good demand and tightening stocks being the major supportive factors. Any data supporting this theme like good exports and high crude oil, which can lead to increased bio-diesel usage, is resulting in heavy speculative buying.

However, domestically the arrival of khariff oilseeds is expected to continue to surge. At the same time, high global prices is resulting in strong demand for soybean from plants as they are expecting an increased export demand for meal at higher quotes.

Government of India has kept the base import price of palm oil and soy oil unchanged despite the soaring global prices. Indias September edible oil imports are reported to have increased 23% on year to 4,46,721 tonnes. The November September imports have increased 11% on year to 4.21 million tonnes.

The most active November soybean contract at National Commodity Derivatives Exchange [NCDEX] at 10.50 hours is trading higher at Rs 1,654.00 [+ 14.50] per 100 kg with 35,590 tonnes traded.

At NCDEX the soy oil November contract is trading higher at Rs. 489.35 [+ 2.95] per 10 kg with 7,920 tonnes traded. The November contract on the National Board of Trade [NBOT] is up at Rs 490.20 [+ 3.30] per 10 kg, while the same month contract at the Multi Commodity Exchange of India Ltd [MCX] is trading higher at Rs. 489.40 [+ 2.70] per 10 kg with 2,970 tonnes traded.

The Crude Palm Oil [CPO] at the Bursa Malaysia Derivatives [BMD] has ended the morning session sharply higher supported by the overnight gains in US soy oil and higher export figures. CPO, which had closed at a record high on Friday, has still not lost steam and has already crossed the previous all-time high of 2,775.

Cargo surveyor Intertek Tracking Services has pegged the October 1-15 exports higher by 6.44 % on month at 6,71,741 tonnes. SGS and Malaysian Palm Oil Board statistics are expected later in the day.

The benchmark January contract after touching an all-time high of 2,791 has ended the morning session at MYR 2,761 [+ 43.00] a tonne, with 6,966 tonnes traded.

The soy complex at the Chicago Board of Trade closed higher on Monday night with harvesting delay due to wet weather and high crude oil prices setting the positive tone. Crude oil at more than $ 85 a barrel is resulting in speculative buying on assumption of higher bio-diesel demand.

November soybeans settled 10 1/4 cents higher at $9.87 and January soybeans ended 10 1/2 cents higher at $10.05 3/4. December soymeal settled $2.30 higher at $281.20. December soyoil finished 53 points higher at 40.06 cents a pound.

MUSTARD SEED

Mustard seed futures is trading higher driven by the overall bullish sentiments in the global markets, which is resulting in domestic prices of oilseeds and edible oils also moving up.

The combination of tight supply, good demand in mustard seed and oil and fear of acreage shifting to competing wheat is keeping the sentiments in mustard seed bullish currently.

The fear of acreage shifting to wheat is quite strong as the global and domestic wheat market is more bullish than the oilseed market. The sowing is expected to gather pace within a fortnight in India, when a clearer picture will emerge.

Most active mustard seed November futures on NCDEX is trading higher at Rs. 470.15 [+ 1.85] per 20 kg with 18,600 tonnes traded.

The regional platforms are trading higher, with the active November contract at Sirsa and Hapur quoting at Rs. 428.90 [+ 2.20] and Rs. 489.80 [+ 2.40] per 20 kg. respectively.

CASTOR SEED

Castor seed futures aretrading mixed in thin trading with market participants awaiting for clear leads from the regional markets.

The castor seed space is in a confused mood currently, with market trading in a very thin range. While, the tight current stock availability and delay in new crop arrivals are being seen as positive. Bumper new crop and Rupee appreciation affecting exporters is being seen as negative.

Clear trends are likely to emerge with the arrival of the new crop, when the exporters also will get active.

Most active castor seed November futures on NCDEX is trading lower at Rs. 401.60 [- 0.30] per 20 kg with 60 tonnes traded.