Mumbai - Indian vegetable oilseed and oil complex opened lower Tuesday affected by the losses in global markets. Profit-booking is also evident in all the markets after the gains made yesterday.

Malaysian palm oil has ended the morning session lower affected by the overnight losses in US soy oil and crude oil. The US markets are currently trading in a range-bound manner, which is also supporting the losses in the Asian markets.

The global markets are in a profit-booking mood currently, as this week is the last full week, before this year ends. The market participants are also in a holiday mood and are therefore not interested to take risks and push the market forward currently.

The weather concerns are however continuing to be a worry for the oil production tracts, which is limiting losses in the global markets. Heavy rain and flooding is expected to result in a 20% reduction in Malaysias palm oil production. Dry weather and depletion of soil moisture is becoming a worry for the standing soy crop especially in Argentina. Weather forecasters are predicting La Nina induced dry weather in Brazil and Argentina later in the crop cycle.

The Solvent Extractors Association of India reported today that India has imported 3,47,320 tonnes of edible oils in November 07, up from 2,52,242 tonnes imported in the same month last year. Surprisingly, for the first time in the last five years, India did not import a single shipment of soy oil in November. The disparity between local and imported soy oil prices and sharp rise in availability of domestic soy oil are said to have resulted in this. The data also showed that India imported 314,611 tonnes of crude palm and 30,014 tonnes of RBD Palmolein in November.

The most active January soybean contract at National Commodity Derivatives Exchange [NCDEX] at 10.40 hours is trading lower at Rs 1,898.00 [- 11.00] per 100 kg with 48,410 tonnes traded.

At NCDEX the soy oil January contract is trading lower at Rs. 539.70 [- 2.05] per 10 kg with 5,620 tonnes traded. The January contract at the National Board of Trade is down at Rs. 540.80 [- 1.10] per 10 kg, while the same month contract at the Multi Commodity Exchange of India Ltd [MCX] is trading lower at Rs. 539.70 [- 1.70] per 10 kg with 2,080 tonnes traded.

Crude Palm Oil [CPO] at the Bursa Malaysia Derivatives [BMD] has ended the morning session lower, affected by the overnight losses in US soy oil and crude oil. However, flooding, expected reduction in production and rise in exports are limiting the losses.

The active March 08 contract has ended the morning session lower at MYR 2,954.00 [- 21.00] a tonne with 2,118 lots traded. [MYR=Malaysian Ringitt] [1 lot=25 tonnes]

Soy complex at the Chicago Board of Trade has closed lower on Monday night, as profit-booking capped the earlier gains. While weather concerns and strong demand limited the downside, the losses in crude oil and wheat induced the market to book profits.

January soybeans settled 1/4 cent lower at $11.56 3/4 and March soybeans ended 1 cent higher at $11.76. January soymeal settled $1.20 lower at $324.70 per short ton. January soyoil finished 5 points lower at 46.17 cents per pound.

MUSTARD SEED

Mustard seed futures is trading lower affected by the losses in the domestic soy complex and in the global markets. The market is also booking profits after the sharp gains recorded yesterday.

However, the lagging acreage, lower new crop and expected delay in arrival of new crop can be expected to limit the losses. No further significant increase in acreage is expected by the market, as the weather will not suitable for the growth of the crop. The industry participants are estimating the crop size to be in the range of 5 5.3 million tonnes against, 5.8 million tonnes produced last year.

Most active mustard seed January futures on NCDEX is trading lower at Rs. 474.35 [- 1.35] per 20 kg with 6,490 tonnes traded.

The regional platforms are trading lower with the active February 08 contract at Sirsa and Hapur quoting at Rs 449.50 [- 0.70] and Rs 501.00 [- 2.00] per 20 kg respectively.

CASTOR SEED

Castor seed futures is trading lower, with profit-booking continuing as many of the players preferring to exit the market by booking profits. With the arrivals expected to strengthen from mid-January, participants do not want to hold on to long positions.

The January castor seed futures on NCDEX is trading lower at Rs. 418.60 [- 4.40] per 20 kg with 60 tonnes traded.