Refined Soy Oil overseas market still firm

2009-11-20 12:36:12

Refined Soybean Oil (December contract) futures closed higher on account of firm overseas market on Wednesday.

The USDA’s Weekly Export Sales figure released on Thursday, which shows the net oil sales came at 12,400 tonnes to reach 45.3% sold for the year vs. the 5-year average of 22.3%.

The benchmark December contract on NBOT Exchange (Indore), Ref Soy oil futures closed lower Rs 2.90 at Rs 487.00/10 Kg on Thursday, from its high of the day (492.10) and touched a low of MYR 486.40/10 kg.

Argentina soybean growing areas received needed moisture over the past 24 hours as expected. Planted area has reached 44.2%. According to the Buenos Aires Grain Exchange, up 10.4% from last week but still slightly behind last year.

Technical Analysis

Ref Soy Oil Prices (NCDEX December Contract) closed lower at 487.50 per 10 Kg on Thursday; its high of the day was 493.80 levels and touched a low 486.70 level.

Prices closed above its 10 day and below its 20 day EMA. 14-Day RSI is at 71.42, which is in overbought zone.

Outlook

Refined soy oil futures are expected to trade slightly higher on account of firm overseas market (for short term). However, in the long term perspectives prices are expected to move southwards on account of huge stock of imported edible oil this year as compared to last year and decision of continue to import of crude edible oil at 0% also in favor of bears in the market.

Courtesy: Angel Commodities