Mumbai - Indian vegetable oilseed futures were trading down on profit-booking of yesterdays losses driven by the huge losses in the global edible oil, energy markets. The cash markets are also subdued with buyers waiting for the market to stabilize. However, the expectation of festival demand remaining strong for the current month is limiting losses.

The Malaysia palm oil futures has ended the morning session lower affected by the losses in US soy oil and crude oil. The US soy complex is trading sharply down currently with December soy oil and November soybean quoting down by 130 points and 38.25 cents on e-CBOT.

The energy markets collapsed overnight as the hurricane Gustav weakened. Crude oil for October delivery at New York Mercantile Exchange is quoting down by $ 4.44 at $ 111.02 a barrel.

Indian oilseed futures are trading down tracking the huge losses in the global edible oil and energy markets. The current good condition of khariff oilseeds and the nearing harvest are also weakening the sentiments. Profit-booking of yesterdays above 1% gains is also being seen.

The arrivals of early-sown soybean, groundnut are reported from southern states in small quantities. The arrival of soybean in Maharashtra and groundnut in Gujarat are expected to increase within two weeks. The harvesting of early sown groundnut in Gujarat has commenced in some areas. However, many farmers are waiting for one-more round of rains to loosen the soil. The anticipation of arrivals picking pace soon in these states has resulted in stockists releasing stocks of last years crop into the market. However, the supply in Madhya Pradesh has not eased significantly, as arrivals of soybean are expected to pick up only by October.

However, the losses are limited by expectation that demand in cash markets will pick up once the market stabilizes as the festival season is in full swing. Ideas that prices have bottomed out and some recovery can be expected in the near-term are also limiting the losses. With inflation dropping slightly and harvesting of oilseeds nearing, domestic industry is also hoping that if prices fall sharply, the Government may take some policy measures to ensure that farmers get a more remunerative prices.

The October soybean contract at National Commodity Derivatives Exchange [NCDEX] at 10.30 hours is trading lower at Rs. 2,162.00 [- 20.00] per 100 kg with 15,930 tonnes traded. The September contract at National Board of Trade [NBOT] is down at Rs. 2,550.00 [- 17.50] per 100 kg.

September CPO at Multi Commodity Exchange of India has hit the first circuit filter of 2% and is trading down at Rs. 374.00 [- 6.20] per 10 kg with 520 tonnes traded.

Crude Palm Oil [CPO] at the Bursa Malaysia Derivatives [BMD] has ended the morning session sharply down affected by the heavy losses in US soy oil and crude oil. However, significant gains in Malaysia August palm oil exports have limited the losses.

Malaysias palm oil exports in August have risen by 8% on month to an eight-month high of 1.49 million tonnes, as estimated by cargo surveyor Intertek Agri Services. The estimate is above market expectations of a 2-5% rise on month. Another surveyor, SGS (Malaysia) Bhd., is expected to issue August export estimates later in the day.

The benchmark November contract after touching a low of MYR 2,495 has ended the session down at MYR 2,515.00 [- 105.00] a tonne with 3,508 lots traded.[MYR=Malaysian Ringitt][1 lot=25 tonnes]

The US soy complex closed mixed on Friday after a firm start with pre-weekend and month-end position squaring seen ahead of an extended holiday week-end. September soybeans settled 1/2 cent lower at $13.32 and November soybeans ended unchanged at $13.24. December soymeal settled $0.80 lower at $358.00 per short ton. December soy oil finished 12 points higher at 54.20 cents per pound.

MUSTARD SEED

Mustard seed futures is trading with profit-booking of yesterdays above 1.5% gains being seen on account of the heavy losses in domestic soybean, global edible oil and energy markets. The slide in prices is keeping away the buyers in the cash market too. The long-term view that demand for mustard oil will fall when khariff oilseed arrivals commence is also weighing on the market sentiments.

However, the expectation that demand for rapeseed from crushing units will pick up once the market stabilizes is limiting the losses. The demand for rapeseed from crushing units is expected to remain strong for a month. Mustard oil is the preferred oil in West Bengal and its demand usually peaks during the Durga Puja festivals, which falls this year in the first week of October.

Most active mustard seed November futures on NCDEX is trading lower at Rs. 595.35 [- 3.30] per 20 kg with 11,040 tonnes traded. The regional markets are down with November contract at Hapur quoting at Rs. 643.10 [- 1.10] per 100 kg.

CASTOR SEED

Castor seed futures is trading down affected by the losses in the edible oilseed markets. The players are expecting the cash market to dull today too as exporters, crushers are reported to be well-stocked amid expectation that demand from overseas markets will be slower in the coming months.

Most active castor seed October futures on NCDEX closed lower at Rs. 628.00 [- 2.80] per 20 kg with 20 tonnes traded.