Mumbai - Indian vegetable oilseed and oil futures opened higher Friday, supported by the current gains in the global markets and short-covering after yesterdays sharp losses.

Malaysian palm oil futures has ended the morning session higher, recovering from yesterdays 5-week low closing. While US soy oil closed marginally down yesterday, it is trading sharply higher now, led by strong gains in US crude oil. January crude oil on the New York Mercantile Exchange is trading higher at above $ 90 a barrel.

The Indian markets are now closely following the global markets, which are tracking the movements in crude oil recently. The use of edible oils as bio-fuels is leading to speculative buying and selling based on the price movements in crude oil.

The sharp increase in November soymeal exports from India, is also supporting the sentiments in the Indian markets. The Soybean Processors Association of India [SOPA] in data released yesterday evening, has estimated Indias soymeal exports in November at 5,31,268 tonnes, up by 47.18% from 3,60,971 tonnes exported a year earlier. During the April-November period, exports totaled 1.47 million tonnes, down 28.16% from 2.04 million tonnes a year earlier.

Short-covering after yesterdays sharp losses is also visible in the Indian markets, as reduction in supply of imported oils is keeping the sentiments positive in the domestic physical markets. The lack of selling pressure and good demand from plants had prevented the soybean physical markets too from moving significantly down yesterday, despite the fall in the futures markets.

The most active January soybean contract at National Commodity Derivatives Exchange [NCDEX] at 10.15 hours is trading higher at Rs 1,805.00 [+ 8.50] per 100 kg with 8,910 tonnes traded.

At NCDEX the soy oil January contract is trading higher at Rs. 534.15 [+ 2.85] per 10 kg with 5,380 tonnes traded. The January contract at the National Board of Trade [NBOT] is up at 533.80 [+ 2.10], while the same month contract at the Multi Commodity Exchange of India Ltd [MCX] is trading higher at Rs. 533.80 [+ 3.00] per 10 kg with 1,540 tonnes traded.

Crude Palm Oil [CPO] at the Bursa Malaysia Derivatives [BMD] has ended the morning session higher, supported by the gains in US soy oil and crude oil in current after-hours trading. Short-covering after yesterdays sharp losses is also seen, as crude oil has moved above $ 90 a barrel.

The benchmark February contract has ended the morning session higher at MYR 2,890.00 [+ 40.00] a tonne with 4,608 lots traded. [MYR = Malaysian Ringitt]

January soy oil on e-CBOT is quoting higher by 30 points in after-hours trading.

The soy complex at the Chicago Board of Trade [CBOT] has ended Thursday night marginally lower after a session of consolidated, two-sided trading. Profit-booking after recent gains and losses in palm oil led to the weakness in the market. However, sharp gain in crude oil, wheat, expectation of strong long-term demand and lingering weather concerns for South American crops limited the losses.

January soybeans settled 3/4 cent lower at $10.98 3/4 and March soybeans ended 1/4 cent higher at $11.17 3/4. January soy meal settled $1.10 lower at $302.30 per short ton. January soy oil finished 6 points lower at 45.64 cents per pound.

MUSTARD SEED

Mustard seed futures is trading higher tracking the gains in domestic soy complex and in the global markets. However, the underlying weakness in the markets, due to the progressing acreage and the huge stock at the NCDEX designated warehouses is limiting the gains, especially in the near-by contracts.

Most active mustard seed January futures on NCDEX is trading higher at Rs. 473.00 [+ 1.70] per 20 kg with 5,720 tonnes traded.

The regional platforms are trading mixed with the active February 08 contract at Sirsa and Hapur quoting at Rs 445.90 [- 0.50] and Rs 501.80 [0.00] per 20 kg respectively.

CASTOR SEED

Castor seed futures is trading higher on fresh buying after previous two sessions, sharp losses. Traders are reported to be buying at lower levels to increase their long-term profitability. The expected global shortage of 80,000 1,00,000 tonnes is expected to keep the prices positive in the long-term.

The January castor seed futures on NCDEX is trading higher at Rs. 420.00 [+ 0.60] per 20 kg with 90 tonnes traded.