Mumbai - Indian vegetable oilseeds and oil complex opened lower amid profit-taking despite the moderate gains in the global markets Monday. Increased selling pressure is seen at the physical markets at the current high levels.

Malaysian palm oil has ended the morning session moderately up, supported by Fridays sharp gains in the US soy oil and crude oil markets. However, currently US soy oil and crude oil are trading in a highly range-bound manner. The Indian markets have already factored in the US gains in Saturdays trading.

The global markets are in a holiday mood and further major gains are not expected, which is prompting the Indian markets to book profits from the recent gains. The selling had actually commenced from Saturday itself, after the active soybean contract crossed Rs 2,000 a quintal mark.

The Indian markets had been making sustained gains for the past nine sessions, which just a minor correction in between. The last five successive sessions have also closed positively. Industry participants are saying that a correction was overdue in the Indian markets.

The most active February soybean contract at National Commodity Derivatives Exchange [NCDEX] at 10.50 hours is trading lower at Rs 1,987.00 [- 6.00] per 100 kg with 19,330 tonnes traded.

At NCDEX the soy oil January contract is trading lower at Rs. 547.90 [- 2.00] per 10 kg with 4,390 tonnes traded. The January contract at the National Board of Trade is down at Rs. 547.60 [- 2.20] per 10 kg, while the same month contract at the Multi Commodity Exchange of India Ltd [MCX] is trading lower at Rs. 547.50 [- 2.30] per 10 kg with 2,220 tonnes traded.

Crude Palm Oil [CPO] contract at the Bursa Malaysia Derivatives [BMD] has ended the morning session higher supported by the strong gains in the US soy oil and crude oil on Friday night. US soy oil is making gains currently too. The flood-induced fall in monthly production and strong exports are also supporting the gains.

The active March 08 contract has ended the morning session higher at MYR 3,008.00 [+ 16.00] a tonne with 1,856 lots traded. [MYR = Malaysian Ringitt] [1 lot = 25 tonnes]

The January soy oil on e-CBOT is quoting higher by 4 points in after-hours trading.

Soy complex at the Chicago Board of Trade closed sharply higher on Friday, with soy oil soaring to new contract highs as a result of strong underlying demand and speculative buying. The expansion of the renewable fuel standard in the new U.S. energy bill has raised the bar for bio-fuel production as well as increasing the long-term demand for corn and soy oil.

January soybeans settled 16 3/4 cents higher at $11.77 1/2 and March soybeans ended 16 1/4 cents higher at $11.96. January soymeal settled $3.10 higher at $328.20 per short ton. January soyoil finished 52 points higher at 47.15 cents per pound.

MUSTARD SEED

Mustard seed futures is trading lower with the profit-booking in the domestic soy market supporting the selling in mustard seed. The selling pressure in mustard seed too is high, as stockists want to empty their godowns before the arrival of the new crop. The current rates are very high and they want to increase their profitability by selling at this level.

Most active mustard seed February futures on NCDEX is trading lower at Rs. 473.95 [- 2.65] per 20 kg with 9,290 tonnes traded.

The regional platforms are trading lower with the active February 08 contract at Sirsa and Hapur quoting at Rs 450.10 [- 0.90] and Rs 500.70 [- 2.00] per 20 kg respectively.

CASTOR SEED

Castor seed futures has opened lower in thin trading with profit-booking in edible oils, prompting selling in castor seed too.

The January castor seed futures on NCDEX is trading lower at Rs. 426.40 [- 1.90] per 20 kg with 60 tonnes traded.