2009-11-24 12:29:14
Refined Soybean Oil (December contract) futures closed higher on account of firm overseas market on Monday.
The benchmark December contract on NBOT Exchange (Indore), Ref Soy oil futures closed higher Rs 8.30 at Rs 503.50/10 Kg on Monday, from its high of the day (497.50) and touched a low of MYR 494.20/10 kg.
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%.
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 higher at 505.00 per 10 Kg on Monday; its high of the day was 510.50 levels and touched a low 498.70 level.
Prices closed above its 10 day and below its 20 day EMA. 14-Day RSI is at 78.15, which is in overbought zone.
Outlook
Refined soy oil futures are expected to trade range bound on account of fresh fundamentals and lower demand at retail ends (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
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