Mumbai - Indian vegetable oilseed futures were trading tad down with the weak domestic sentiments of approaching khariff harvest season and supply pressure in cash markets continuing to pressurize the markets. However, the marginal gains in global edible oil, energy markets are expected to limit losses.

The Malaysian palm oil futures has ended the morning session tad up in range-bound trading supported by gains in US soy oil. The US soy complex closed down overnight on strength in US Dollar and losses in crude oil. However, it is trading up currently with December soy oil and November soybean quoting up by 17 point and 5.25 cents on e-CBOT.

The energy markets fell overnight with crude oil for October delivery falling 68 cents to settle at $ 102.58 a barrel on the New York Mercantile Exchange, the lowest since April 2. However, it is recovering currently with the contract quoting up by $ 0.97 a barrel.

Indian soybean futures is trading down on account of the weak domestic sentiments and high selling pressure. The domestic sentiments are still weak with players anticipating of further losses when the peak arrivals season commence from mid-October.

The soybean market has been making very strong losses in the recent sessions with October soybean contract falling in four of the five previous sessions and losing more than 7%.

The current good condition of khariff oilseed crops, picking up of new soy arrivals, release of old stocks by stockists, high stocks of imported palm oil at ports and the approaching peak harvest season are continuing to pressurize the cash and future markets. The domestic industry is expecting this years khariff output to exceed last years due to improvement in area and current good condition of the crops.

The overall global picture has also turned highly bearish with huge supply boost expected in the coming months. US, India and China are expected to produce bumper soybean crops this season. The demand for new Indian soymeal has also fallen with buyers keeping away in anticipation of a further price fall. Players are fearing that prices could fall from current level of $ 380-400 a tonne to around $ 300 a tonne.

The October soybean contract at National Commodity Derivatives Exchange [NCDEX] is trading lower at Rs. 2,000.00 [- 21.00] per 100 kg with 13,520 tonnes traded. The October contract at National Board of Trade [NBOT] ended down at Rs. 2,000.00 [- 26.00] per 100 kg.

October CPO at Multi Commodity Exchange of India is trading lower at Rs. 342.00 [- 0.10] per 10 kg with 280 tonnes traded.

Crude Palm Oil [CPO] futures on Bursa Malaysia Derivatives [BMD] has ended the morning session tad up after a session of highly range-bound trading with the gains in US soy oil and crude oil in after-hours trading supporting the market.

The benchmark November contract has ended the morning session up at MYR 2,339.00 [+ 10.00] a tonne with 1,984 lots traded. [MYR=Malaysian Ringitt]

The US soy complex closed down on Wednesday with strength in Dollar, weakness in crude oil and near-term favourable weather prompting speculative selling. The threat of frost on the late-maturing crops has abated for the time being supporting the selling. The USDA will be releasing its September Supply Demand Reports on Friday and market is expected to be range-bound till then.

September soybeans settled 27 1/2 cents lower at $11.81 1/2 and November soybeans ended 23 cents lower at $11.76 1/2. December soymeal settled $8.20 lower at $325.80 per short ton. December soy oil finished 49 points lower at 48.32 cents per pound.

MUSTARD SEED

Mustard seed futures is trading down up with heavy selling pressure and liquidation being seen on account of weak sentiments. The active November mustard seed contract has fallen by more than 9% in the previous five sessions. However, the sentiments are still weak with traders expecting further fall in prices when the peak khariff arrival and crushing season commences from late October.

Most active mustard seed November futures on NCDEX is trading lower at Rs. 543.70 [- 4.05] per 20 kg with 14,830 tonnes traded. The regional markets are down with November contract at Hapur quoting at Rs. 632.10 [- 1.10] per 100 kg.

CASTOR SEED

Castor seed futures is trading lower with the market pressurized by the weak cash markets and persistence of soft tone in the edible oilseed markets. The strong improvement in acreage and expectation of increase in production over previous year levels are also keeping the sentiments negative.

Most active castor seed October futures on NCDEX is trading lower at Rs. 612.50 [- 3.90] per 20 kg with 220 tonnes traded.