Mumbai- The Indian vegetable oilseed and oil futures have opened lower, affected by the weakness in the global markets. Profit-booking at higher levels, expectation of increasing exports and increased selling in the physical markets is also affecting the weakness.

The Malaysian palm oil market has ended the morning session lower. US soy oil and crude oil too are trading lower in electronic, after-hours trading. However, US crude oil had made significant gains overnight and the January contract on the New York Mercantile Exchange is trading around $ 89 a barrel currently.

Tuesday US Department of Agriculture, crop report did not provide any new significant developments. US soybean ending stocks were reduced by 25 million bushels to 185 million, a 68% decline from 2006-07, while US exports were increased by 20 million bushels.

The Indian edible oil markets are passing through a weak phase currently as the falling global markets and reduction in arrival of khariff oilseeds has led to an expectation of increase in imports of edible oils and increased selling pressure from plants.

The successive strong gains for the past three successive sessions have dried up the buying interest in the soybean market to some extent. At the same time, US soymeal has closed higher overnight and US soybean has reached fresh 34-year highs, which is preventing major loss in the domestic soybean market.

The most active January soybean contract at National Commodity Derivatives Exchange [NCDEX] at 10.25 hours is trading lower at Rs 1,864.50 [- 4.00] per 100 kg with 13,040 tonnes traded.

At NCDEX the soy oil January contract is trading lower at Rs. 532.00 [- 1.55] per 10 kg with 1,320 tonnes traded. The January contract at the National Board of Trade is down at Rs. 532.30 [- 0.80] per 10 kg, while the same month contract at the Multi Commodity Exchange of India Ltd [MCX] is trading lower at Rs. 532.40 [- 1.15] per 10 kg with 690 tonnes traded.

Crude Palm Oil [CPO] at the Bursa Malaysia Derivatives [BMD] has ended the morning session lower, tracking the current losses in US soy oil and crude oil in electronic, after-hours trading. The concerns over high prices, slowing down exports and the all-time high stocks are also supporting the weakness in the market.

The benchmark February contract has ended the morning session lower at MYR 2,871.00 [- 9.00] a tonne with 1,552 lots traded. [MYR = Malaysian Ringitt]

Soy complex at the Chicago Board of Trade [CBOT] closed higher on Tuesday night supported by a tightening U.S. soybean balance sheet, strong cash markets, lingering worries over dryness in parts of South American soybean areas and talk of the potential for the inclusion of a biofuel mandate in the US farm bill.

January soybeans settled 9 3/4 cents higher at $11.35 1/2 and March soybeans ended 10 1/4 cents higher at $11.54 1/2. January soymeal settled $4.30 higher at $318.20 per short ton. January soyoil finished 16 points higher at 45.92 cents per pound.

MUSTARD SEED

Mustard seed futures has opened lower with losses in the soy complex, global markets and the huge expected deliveries in the forthcoming expiry pressurizing the markets. Market expectations that a large part of the expected deliveries cannot be re-validated and would come into the physical markets are leading to the selling in the physical and futures markets.

Most active mustard seed January futures on NCDEX is trading lower at Rs. 471.10 [- 0.65] per 20 kg with 2,190 tonnes traded.

The regional platforms are trading lower with the active February 08 contract at Sirsa and Hapur quoting at Rs 441.80 [- 0.40] and Rs 497.90 [- 0.20] per 20 kg respectively.

CASTOR SEED

Castor seed futures has not finalized any trades.