Mumbai - Indian vegetable oilseed futures were trading mixed in range-bound trading with soybean quoting down affected by the strong losses in US soy market in previous two sessions and the approaching khariff oilseed harvest season. However, the moderate gains in global edible oil markets, firm demand in cash markets and weakness in Rupee are limiting the losses.

The Malaysia palm oil futures has ended the morning session moderately up on short-covering of Wednesdays losses in expectation of demand picking up. The US soy complex tumbled on Tuesday and Wednesday with contracts settling at two-week lows. It is currently trading mixed in a range-bound manner with December soy oil and November soybean quoting by [+] 31 points and [-] 2.50 cents on e-CBOT.

The energy markets are consolidating after the huge losses made on Tuesday. Overnight, October contract at New York Mercantile Exchange settled down by $ 0.36 at $109.35 a barrel. Currently, the contract is quoting up by $ 0.15 a barrel.

Indian oilseed futures are trading mixed in a range-bound manner with soybean quoting down affected by the huge losses in US soybean in previous two sessions. US soybean is quoting down currently in after-hours trading too. However, the losses are limited by current gains in the global edible oil, crude oil markets, weakness in the Indian Rupee and the expectation of festival demand remaining strong. Ideas that Government may take some policy measures to limit further fall in prices as harvesting is nearing are also supportive.

The Indian Rupee has weakened considerably and has fallen below a 17 month low to cross the 44 level. Yesterday Rupee closed at 44.38 against the Dollar and it is quoting further lower at 44.50 levels in todays early trade. The weakness in Rupee makes imports of edible oil costlier and can raise domestic edible oil prices. It increases the revenue of soymeal exporters. However, soymeal exports are currently negligible as the season has not yet commenced.

Mr. Thomas Mielke, executive director of agri-consultancy ISTA MIELKE GmbH, said on Wednesday that crude palm oil prices in Malaysia may rise to MYR 2,900 a tonne by the end of this year on higher demand and slowing output. The demand is expected to increase due to the $ 500 a tonne discount with soy oil in global markets and increased use of palm oil as a bio-diesel feedstock due to the fall in prices. He is expecting Malaysias palm oil output to start falling from November onwards after 15 straight months of an increase in production.

Meanwhile, the good condition of khariff oilseed crops and the nearing harvest are pressurizing the sentiments. The arrivals of early-sown soybean, groundnut are reported from southern states, Maharashtra and Gujarat in small quantities. The arrival of soybean in Maharashtra and groundnut in Gujarat are expected to increase within two weeks.

The October soybean contract at National Commodity Derivatives Exchange [NCDEX] at 10.25 hours is trading lower at Rs. 2,140.00 [- 6.00] per 100 kg with 7,810 tonnes traded. The September contract at National Board of Trade [NBOT] is up at Rs. 2,566.00 [+ 1.00] per 100 kg.

September CPO at Multi Commodity Exchange of India is trading higher at Rs. 373.00 [+ 0.60] per 10 kg with 240 tonnes traded.

Crude Palm Oil [CPO] at the Bursa Malaysia Derivatives [BMD] has ended the morning session moderately up, on expectation of good demand in the cash markets and current marginal gains in US soy oil on E-CBOT. The market had closed lower by 1.3% on Wednesday, when the Indian markets were closed.

The benchmark November contract has ended the session higher at MYR 2,480.00 [+ 29.00] a tonne with 5,106 lots traded. [MYR=Malaysian Ringitt][1 lot=25 tonnes]

The US soy complex closed sharply down on Tuesday and Wednesday with soybean and products settling down at two-week lows pressurized by reports of rains in US Midwest after a dry August, strength in US Dollar and huge losses in crude oil. However, ideas that current rains may delay maturing of soybean and expose soybean to possible early-frost limited the losses.

September soybeans settled 50 1/2 cents lower at $12.51 and November soybeans ended 47 cents lower at $12.51 1/2. December soymeal settled $13.40 lower at $342.00 per short ton. December soy oil finished 159 points lower at 51.24 cents per pound.

MUSTARD SEED

Mustard seed futures is trading tad up supported by current gains in global edible oil markets, firm festival demand in cash markets. However, the losses in global edible oil markets on Wednesday, weakness in domestic soybean and the long-term view that demand for mustard oil will fall when khariff oilseed arrivals commence are limiting gains and may push the market into red later.

Most active mustard seed November futures on NCDEX is trading tad up at Rs. 595.65 [+ 0.15] per 20 kg with 7,510 tonnes traded. The regional markets are up with November contract at Hapur quoting at Rs. 644.80 [+ 0.30] per 100 kg.

CASTOR SEED

Castor seed futures is trading up with short covering of heavy losses made in the previous two sessions being seen, supported by the weakness in Rupee, which can make exports of castor oil more remunerative. However, the sentiments are affected by the weakness in edible oilseeds and expectation of further weakness in cash markets due to the dull demand from exporters, crushers who are reported to be well-stocked amid dull export demand for castor oil.