Refined Soy Oil bullish on long term

2009-12-07 13:48:21

Refined Soybean Oil (December contract) futures closed lower on profit taking on Saturday.

As per Dorab Mistry( Analyst, London based vegetable oil Industry)CPO may touch MYR 3000/tonne by March 2010 also added bullish market sentiments.

The benchmark December contract on NBOT Exchange (Indore), Ref Soy oil futures closed lower Rs 4.20 at Rs 492.80/10 Kg on Thursday, from its high of the day (495.90) and touched a low of MYR 490.80/10 kg.

CBOT January soybean oil futures ended higher at 40.13 cents/pounds on Friday up 0.01 cents/pounds as compared to previous close.

The USDA’s Weekly export reports showed that the net oil sales came in at 19,000 tonnes, all for the current marketing year.

Technical Analysis

Ref Soy Oil Prices (NCDEX January Contract) closed lower at 497.450 per 10 Kg on Saturday; its high of the day was 501.45 levels and touched a low 497.00 level.

Prices closed above its 10 day and below its 20 day EMA. 14-Day RSI is at 58.82, which is in neutral zone.

Outlook

Refined soy oil futures are expected to trade slightly higher on firm overseas market due to more use of soy oil in bio-fuel in the month of October may provide support to bulls (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