Mumbai - Indian vegetable oilseeds and oil complex were trading very sharply up Monday as comments by experts at the Kuala Lupur Conferencehas pushed Malaysian palm oil futures pass two landmarks MYR 3,800 and 3,900 a tonne in one session. Strong gains in US soy oil and crude oil in electronic trading are also supporting the gains.

The trading on National Board of Trade [NBOT] has virtually stopped as margin has increased to 10%, with prices Rs. 628 per 10 kg. However, trading is continuing as usual on the National Exchanges, with no change in margins.

Malaysian palm oil futures has ended the morning session very sharply up at above MYR 3,900 a tonne. May soy oil had closed at a new all-time high on Friday night and is currently quoting up by 114 points on e-CBOT. March crude oil on the New York Mercantile Exchange is quoting up at just below $ 100 a barrel.

London-based vegetable oils analyst Mr. Dorab Mistry has said that the outlook for Malaysias palm oil exports is strong, despite prices hovering around record-high levels. He added that Malaysias end-month palm oil inventories are expected to decline in the next few months on strong demand and less availability of other vegetable oils.

Mistry added that the purchase pattern has changed since palm oil prices moved above MYR 3,000 a tonne, which has increased the stocks at ports. Importers were buying only near-term requirements instead of purchasing large volumes several months in advance and bearing the cost of inventories. Buyers are preferring that stocks remain at the port of origin rather than the port of destination. He said such a step was also taken because of limited finances available with buyers as while prices have increased manifold working capital availability has not risen.,

Mistry said India, China, Mexico and Russia are driving the edible oil consumption with stronger purchasing power and a growing working class population pushing up demand. He added that there is no indication that Indian consumption will fall this year due to record high prices.

He also said that if E.U. uses more soy oil and rapeseed oil to make bio-diesel, it will tighten demand for these oils, push up their prices and also purchases of palm oil for cooking purpose.

The most active March soybean contract at National Commodity Derivatives Exchange [NCDEX] at 10.40 hours is trading higher at Rs 2,290.00 [+ 42.00] per 100 kg with 46,970 tonnes traded.

At NCDEX the soy oil March contract is trading higher at Rs. 648.50 [+ 12.45] per 10 kg with 24,380 tonnes traded. The March contract at the National Board of Trade [NBOT] is up at Rs 639.60 [+ 7.50] per 10 kg, while the same month contract at Multi Commodity Exchange of India Ltd [MCX] is trading higher at Rs. 645.50 [+ 11.50] per 10 kg with 9,200 tonnes traded.

Crude Palm Oil [CPO] at the Bursa Malaysia Derivatives [BMD] set a new record high on bullish news from palm oil conference and fears of global deficit in vegetable oil stocks. Industry executive, Mr. M.R. Chandran said that stocks expected to fall to record low levels in 2008 with vegetable oil production to trail demand by 2 2.5 million tons.

Increase in exports with cargo surveyor Intertek Agri Services estimating Malaysian palm oil exports during February 1-25 at 913,062 tonnes, up 16.4% on month and strong soy oil and crude oil also supporting the gains.

The benchmark May CPO contract has ended the morning session up at MYR 3,905 [+ 207] a tonne, off all-time intraday high of MYR 3,914 a tonne with 4,922 tonnes traded. [MYR=Malaysian Ringitt] [1 lot=25 tonne]

The US soy complex closed sharply up on Friday night. March soybeans ended 14 1/4 cents higher at $14.20, May soymeal settled $2.00 higher at $368.20 per short ton. May soyoil finished 90 points higher at 63.02 cents per pound.

MUSTARD SEED

Mustard seed futures is trading sharply up with strong gains in the domestic soy oil and global markets pushing the market sharply up. The strong buying interest in the physical markets is also supporting the gains. The global bullishness is leading to market speculating further long-term gains, which has resulted in strong buying interest from oil-millers and stockists. The new crop and old stocks are both comparatively lesser than normal, which is supporting the heavy buying.

Most active mustard seed May futures on NCDEX is trading higher at Rs. 587.80 [+ 14.85] per 20 kg with 47,840 tonnes traded.

The regional platforms are trading higher with the active May 08 contract at Sirsa quoting at Rs. 513.00 [+ 6.50] per 20 kg respectively.

CASTOR SEED

Castor seed futures is trading higher with fresh gains being seen. Bullish sentiments are persisting on expectation of s