When everyone thought of bumper crop in U. S. and Argentina can trigger major downside in oilseeds China surprised everyone by stating that they may face decline of 7% of total soybean production and fund buying in CBOT managed to give handsome gains to overall oilseed complex. Castor seed too moved up sharply in line with expectation

China National grains and Oils information Center said that Chinese Soy output may decline to 14.5 tonnes down by 6.7 percent as compared to last year. Soy crop survey revealed in Heilongjiang province which is largest Soy producing region, because of drought like situation there has been some damage done to crop.

Palm oil futures went up inline with rising crude oil prices which shot up by 5% yesterday and demand outlook for Palm oil has improved for coming months due to festival season in Asia.

Mustard seed, we might see global bumper crop of mustard seed but yesterday it moved up following uptick in other oilseeds fundamentals for the same are not very bullish.

We believe in near term worst is over for oilseed complex and prices are likely to move up Soybean, Soyoil and palm oil looks very strong for the day. Chinese news is likely to trigger positive momentum in oilseed complex.