Mumbai, Oct 09 The Indian soy complex futures are trading lower tracking the losses in the international markets. However, the losses in all the counters are limited as compared to yesterdays sharp fall. Mustard seed is trading higher worried over the stocks situation.

Arrivals are expected to be strong as farmers are heavily off-loading the stocks. However, as the arrival season has just begun, too low prices might prompt them to hold the stocks for some days. The demand from millers is also strong as the export demand for meal is very high this year. This can be expected to prevent any major fall in the rates.

It is estimated that exporters have entered into commitments for delivery of 7,00,0008,00,000 tonnes of meal to Southeast Asian countries and China for NovemberDecember delivery.

The range-bound losses in Malaysian palm oil, gains in soyoil on e-CBOT in after-hours trading and gains in Indian mustard seed are restricting the losses in Indian soy oil.

The most active November soybean contract at National Commodity Derivatives Exchange [NCDEX] at 10.40 hours is trading lower at Rs 1,573.00 [- 8.00] per 100 kg with 21,570 tonnes traded.

At NCDEX the soy oil November contract is trading lower at Rs. 473.55 [-0.55] per 10 kg with 6,270 tonnes traded. The November contract on the National Board of Trade [NBOT] is down at Rs 474.30 [-0.30], while the same month contract at the Multi Commodity Exchange of India Ltd [MCX] is trading lower at Rs. 473.95 [-0.35] per 10 kg with 7,680 tonnes traded.

The crude palm oil [CPO] at the Bursa Malaysia Derivatives [BMD] has ended the morning session lower tracking the overnight losses in US soy oil and crude oil. However, traders are insisting that until the Malaysian production and stocks data is released by the Malaysian Palm Oil Board on Wednesday only range-bound losses are expected.

The benchmark December contract has ended the morning session lower at MYR 2,529 [-13.00] a tonne with 3,532 lots traded.

The soy complex at the Chicago Board of Trade [CBOT] closed sharply lower on Monday due to progressing US soybean harvest and appreciation in US Dollar. Analysts estimate that as on Sunday, 50% of US soy harvest would have been completed.

Appreciating US Dollar, makes US commodities less attractive for foreign buyers. Weakness in crude oil also weighed on the market. However, the market is still worried over the erratic weather in Brazil, which is delaying the early sowing there.

November soybeans fell 15 cents to $9.25 1/2 per bushel, and January soybeans dropped 18 cents to $9.42. December soymeal ended down $4.90 at $260.50 per short ton, and December soyoil finished down 55 points at 38.48 cents per pound.

MUSTARD SEED

Mustard seed futures are trading higher on supply concerns along with the just range-bound losses in soybean.

The current supply is lesser than required as stockists are holding back stocks in anticipation of better prices later. NAFED, which has stocks around 4,00,000 5,00,000 tonnes is also not releasing stocks currently.

Forward Markets Commission [FMC] is expected to revise the penalty for not meeting delivery obligations within a day or two. It had earlier reduced the penalty and has received several representations condemning and welcoming the move. The revision would take into consideration all the representations as per an FMC spokesperson.

The earlier reduction in penalty had resulted in sharp losses in NCDEX mustard seed.

Most active mustard seed November futures on NCDEX is trading higher at Rs. 448.15 [+ 0.70] per 20 kg with 9,280 tonnes traded.

The regional platforms are trading higher with the active November contract at Sirsa and Hapur quoting at Rs 410.60 [+ 1.80] and Rs 469.60 [+ 1.10] for 20 kg respectively.

CASTOR SEED

Castor seed futures is trading higher in very thin trading. Yesterday, while the regional exchanges are closed higher, the national exchanges had closed in the red. The reports of ships being anchored at ports is providing some bullish support for the market worried over fears of increasing supply.

The most active castor seed November futures on NCDEX is trading higher at Rs 396.00 [+ 0.60] per 20 kg with 50 tonnes traded.

Trading has not commenced in the regional platforms.