Mumbai, Oct 27 The Indian vegetable oilseed and oil futures is trading higher supported by the strong domestic demand, overnight gains in US soy oil, crude oil and overall bullish global edible oil scenario.

The good festival demand for edible oils, export demand for meal and sharply lower acreage under rabi mustard seed as on date is resulting in the market making gains, despite opening lower on profit-taking.

The overall global fundamentals are very bullish currently, with palm oil futures at Malaysia reaching the psychological level of MYR 2,800 a tonne. Indian edible oil prices are expected to further harden to make the prices on parity with the global markets. The strong arrivals in the Indian markets, bumper khariff crop and the appreciating Indian Rupee had prevented the Indian markets from surging as much as the global markets. Now, importers are awaiting for further increase in domestic prices to ensure their profitability, which is tightening the current stock scenario.

While active continuous contracts of CPO at BMD and soy oil at CBOT have surged by 7.0% and 7.1% respectively from October 1 to October 26, refined soy oil at NCDEX has increased by only 3.1%.

The most active December soybean contract at National Commodity Derivatives Exchange [NCDEX] at 10.40 hours is trading higher at Rs 1,745.50 [+ 2.00] per 100 kg with 24,970 tonnes traded.

At NCDEX the soy oil November contract is trading higher at Rs. 499.10 [+ 2.35] per 10 kg with 9,960 tonnes traded. The November contract at the National Board [NBOT] is up at Rs 499.30 [+ 2.40] per 10 kg, while the same month contract at Multi Commodity Exchange of India Ltd [MCX] is trading higher at Rs. 499.05 [+ 2.35] per 10 kg with 690 tonnes traded.

The CBOT soy complex closed higher on Friday night supported by weaker US Dollar and gains in crude oil. The near-month soy oil hit fresh 23-year highs yesterday. However, late selling resulted in the market capping the gains.

The favourable weather continues for US harvesting and Brazil early-sowing progress. However, the market is more worried about the surge in long-term demand, with global edible oils stocks expected to be tightened as a result of increased demand for human consumption and bio-diesel purposes.

November soybeans settled 3/4 cent higher at $9.95 1/2 and January soybeans ended 3/4 cent higher at $10.13 1/4. December soymeal settled $1.70 lower at $277.80. December soyoil finished 46 points higher at 41.38.

Crude Palm Oil [CPO] at the Bursa Malaysia Derivatives [BMD] closed sharply higher at a new record of MYR 2,800.00 [+ 93.00] a tonne with huge volumes of 22,229 lots traded.

MUSTARD SEED

Mustard seed futures is trading higher supported by the gains in soy oil, good demand and tight domestic supply. The anticipation of acreage shifting to wheat or pulses in the upcoming rabi is also resulting in the market making gains with data released by Govt. of India supporting the same. Industry experts are expecting a 10-15% decrease in normal acreage due to shifting to more lucrative crops in irrigated tracts.

As per the Ministry of Agriculture estimates in October 1-25, mustard seed sowing in India has been completed in 8.9 lakh hectares against 12.5 lakh hectares covered at the corresponding period last year.

Most active mustard seed December futures on NCDEX is trading higher at Rs. 480.20 [+ 2.95 per 20 kg with 12,810 tonnes traded.

The regional platforms are trading mixed with the active November contract at Sirsa and Hapur quoting at Rs 426.50 [- 0.10] and Rs 494.10 [+ 2.10] per 20 kg respectively.

CASTOR SEED

Castor seed futures is trading higher, with exporters now worried about the stock situation. The stockists are waiting for further improvement in quotes to release their stocks, as they are aware that exporters are in need. This is keeping the market bullish. The situation is expected to ease only with surge of arrival of new crop in Gujarat within a month.

Most active castor seed November futures on NCDEX is trading higher at Rs. 411.80 [+ 0.90] per 20 kg with 50 tonnes traded.

Trading has not commenced in the regional platforms.