Ref. Soyoil to trade low on higher stock of edible oil

Fundamental Analysis

NCDEX July Soybean oil futures opened lower on weak overseas market and surged immediately on depreciation of INR against US $. However, it could not sustain higher levels and fell sharply on account of lower demand at retail ends and higher import of edible oils.

The benchmark July contract on NBOT Exchange (Indore), Ref Soy oil futures ended lower Rs 4.00 at Rs 469.10/10 Kg on Monday, from its high of the day (476.10) and touched a low of MYR 468.80/10 kg.

CBOT July soybean oil futures ended lower at 35.93 cents/pounds on Monday, down 0.60 cents/pounds as compared to previous close.

The benchmark September contract soybean oil futures at Dalian Commodity Exchange (DCE) settled lower RMB 164 at RMB 7224/tonnes on Monday, from its high of the day 7420 levels and touched a low of RMB 7064/tonnes.

Technical Analysis

Ref Soy Oil Prices (NCDEX July Contract) closed lower at 469.30 per 10 Kg on Monday; its high of the day was 477.00 and touched a low 468.60 level.

Prices closed below its 10 days and its 20 days EMA. 14-Days RSI is at 26.29.

Outlook

Refined soy oil futures are expected to trade lower on higher stock of edible oil, lower demand at retail end and weakness in overseas market for short term. For medium, prices may improve slightly on festival demands. However, for long term, prices are expected to decline on higher import of edible oil and lower demand at retail end and MMTC Ltd has issued a tender to import of edible oil 12,000 metric tonnes of RBD palmolein.

Courtesy: Angel Commodities