Soyabean, mustard seed futures hit 3 pc lower circuit

NEW DELHI: Soyabean and mustard seed futures hit the lower level of 3 per cent on NCDEX counter on Tuesday tracking weak sentiments in global market and improved sowing activity of oilseeds in the country.

At 1200 hrs, the most-active September contract slumped by 3.60 per cent at Rs 2,367 per quintal, October contract by 3.53 per cent at Rs 2,146 per quintal and November contract by 3.91 per cent at Rs 2,115 per quintal.

"Improved weather condition in the major oilseeds growing countries like US, China and Malaysia has pulled down the global market which is indirectly affecting the domestic market," Religare Commodities Analyst Ajitesh Mullick said.

"Besides, good sowing activity in the country owing to revival of monsoon is bearing on futures prices," he added.
On Chicago Board of Trade, September delivery of soyabean is down by over 5 per cent at 1,285 cents per bushel, while soya oil by 2.50 per cent at 54.33 cents per pound.

Showers in oilseeds growing states such as Maharashtra and Madhya Pradesh has given fillip to sowing activity. As a result, traders are expecting oilseeds production to be more than last year. In 2007-08, oilseeds output of Kharif crop stood at 19.84 mn tons.

Following weak sentiments in soyabean market, mustard seed futures also slipped by over 3 per cent on the NCDEX platform.

The most-active September contract dipped by 3.62 per cent at Rs 577 per 20 kg, while November contract by 3.82 per cent at Rs 583.85 per 20 kg.

However, spot prices of soyabean and mustard seed were ruling firm at Rs 2,675 per quintal and Rs 619 per 20 kg respectively.